In a major breakthrough, the Himachal Pradesh government has succeeded in making the Government of the National Capital Territory of Delhi agree to fund 90 per cent of the power component of Renuka project over Giri River in Sirmaur district.

The Renuka project will supply 275 million gallons of water to Delhi every day, besides generating 40 MW of power.

The decision was taken in a meeting held in New Delhi on Wednesday under the Chairmanship of Union Minister for Water Resources, River Development and Ganga Rejuvenation Nitin Gadkari.

Renuka Project in Sirmaur involves construction of 148 metre rock filled dam over Giri River with live storage of 498 million cubic metre of water and a powerhouse at the toe of the dam to generate 40 MW of power. Himachal Pradesh would enjoy the exclusive rights over power generation.

The total cost of the project at 2015 price level is Rs 4600 crore out of which water component is Rs 4325 crore and power component is Rs 275 crore.

It was decided that water component would be shared in the ratio of 90:10 (Centre: States). The 10 percent cost of water component would be shared by the beneficiary states as per their respective water allocations.

Himachal Pradesh would be free to use its 3.15 percent of share of total water allocation wherever it wants, and there is no dam wise limit for drawl of water. Himachal would not require any No Objection Certificate (NOC) for its water usage within 3.15 percent share of allocated water. The state also has the right to sell its unutilised water to any State.

The Government of India has agreed in principle to pay all land acquisition costs of the project including forest, environment and ecology upfront.

The Union Ministry of Water Resources, River Development and Ganga Rejuvenation has already paid Rs 446.96 crore to Himachal Pradesh and is willing to pay the remaining cost on firm requirement from the state government. It was decided that the Union Ministry would move necessary Cabinet note for the purpose.

Additional Principal Secretary to Chief Minister Sanjay Kundu and Engineer-in-Chief, IPH presented the case of the state government in this meeting.