CHANDIGARH: The Himachal Pradesh Cabinet on Tuesday approved the cancellation of 172 small hydro projects, each below 5 MW capacity, under the Himachal Pradesh Energy Development Agency (HIMURJA), where construction had allegedly stalled for an extended period.
The state government will re-advertise these projects, as per the decision taken at a cabinet meeting. It was also decided to apply a uniform free power royalty of 12 per cent, along with an additional one per cent for the Local Area Development Fund, for all hydro projects up to 5 MW that will be allotted in the future.
The cabinet further approved the cancellation of 22 hydroelectric projects above 5 MW, previously allotted by the Directorate of Energy, where implementation agreements had not been signed. For the remaining projects, developers have been allowed time until 5 August 2025 to submit replies to the notices served.
A committee will be constituted to negotiate with 14 project developers for an out-of-court settlement to refund the principal amount of the upfront premium, without interest.
Amendments were also approved to the Himachal Pradesh Minor Minerals (Concession) and Minerals (Prevention of Illegal Mining, Transportation and Storage) Rules, 2015. Under the revised provisions, contractors or agencies engaged in road cutting will now be permitted to use the generated material during the de-siltation and maintenance of reservoir projects for captive purposes.
Additionally, any leftover stacked raw material or finished product, along with the entire material generated, shall be auctioned by the designated committee in accordance with the prescribed procedure.
The cabinet also approved amendments to the existing compassionate employment policy. Under the revised policy, the annual income eligibility criterion per family has been increased from ₹2.5 lakh to ₹3 lakh.
Priority for compassionate appointments will now be given to widows and parentless applicants below 45 years of age, as well as to the dependents of government officials who died while performing their duties.
Furthermore, in cases where vacancies under the existing 5 per cent quota for such appointments are unavailable, the cabinet has permitted a one-time relaxation of this quota to ensure eligible applicants are accommodated.
The cabinet also gave its approval to allow women workers to be engaged in shops and commercial establishments during night shifts, from 7 pm to 7 am, to promote gender equality. It was also decided to grant maternity benefits to every woman employee working in such establishments, as prescribed under the Maternity Benefit Act, 1961.
An increase in the number of B.Sc. Nursing seats at Sister Nivedita Government Nursing College, Shimla, from 60 to 100 was also approved. Additionally, the cabinet sanctioned the establishment of a new B.Sc. Nursing College with an annual intake of 60 seats at Dr. Rajendra Prasad Government Medical College, Kangra at Tanda, along with the creation and filling of 27 posts across various categories.
A cabinet sub-committee was constituted under the chairmanship of Industries Minister Harshwardhan Chauhan to oversee the development of a 300-acre Medical Device Park at Nalagarh. The sub-committee has been instructed to submit its report within two months.
To facilitate the expansion of Kangra Airport, the cabinet granted a one-year extension up to 16 August 2026, under Section 26 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, for land acquisition proceedings.
It also gave its nod to the draft Development Plan for the Dhaulakuan Majra Planning Area in Sirmaur district. The plan aims to conserve natural resources and scenic beauty while promoting sustainable economic development in the region.
Finally, the cabinet approved the extension of the Memorandum of Understanding (MoU) between the State Government and Alliance Air Aviation Limited for operating flights on the Shimla–Dharamshala–Shimla route. The MoU will now remain in effect from 1 July 2025 to 30 June 2026.