Photo of cabinet 290725. Used for indicative purpose only
Shimla, July 30,
The Himachal Pradesh Cabinet on Tuesday cancelled 172 small hydroelectric projects below 5 MW and 22 projects above 5 MW during its second consecutive day of meetings. A state government spokesperson informed that the decisions were taken under the chairmanship of Chief Minister Thakur Sukhvinder Singh Sukhu as part of a focused four-day Cabinet session.
According to the spokesperson, the 172 stalled small hydro projects under HIMURJA will be re-advertised. A uniform 12% free power royalty along with 1% for the Local Area Development Fund will be applicable for all future hydro projects up to 5 MW. The Cabinet also approved the cancellation of 22 larger hydro projects (above 5 MW) allotted by the Directorate of Energy, where implementation agreements had not been signed. Developers of remaining projects have been given time until August 5, 2025, to respond to show-cause notices. A committee will also be formed to negotiate out-of-court settlements with 14 project developers for the refund of the principal upfront premium amount, without interest.
The Cabinet further approved amendments to the Compassionate Employment Policy. The annual family income limit has been increased from ₹2.5 lakh to ₹3 lakh. Preference will now be given to widows, parentless applicants below 45 years of age, and dependents of deceased government employees who died while on duty. Where vacancies under the existing 5% quota are not available, a one-time relaxation has been permitted to ensure eligible applicants are accommodated.
In the education sector, the Cabinet approved increasing B.Sc. Nursing seats at Sister Nivedita Government Nursing College, Shimla, from 60 to 100. It also sanctioned the establishment of a new B.Sc. Nursing College at Dr. Rajendra Prasad Government Medical College, Tanda, with an annual intake of 60 students, along with 27 new posts for its functioning.
For labour welfare and gender equality, the Cabinet approved allowing women to work night shifts (7:00 PM to 7:00 AM) in shops and commercial establishments. It was also decided to provide maternity benefits to all women employees in these establishments as per the Maternity Benefit Act, 1961.
The Cabinet approved amendments to the Himachal Pradesh Minor Minerals (Concession) and Minerals Rules, 2015, permitting contractors involved in road cutting and reservoir de-siltation to use generated material for captive purposes. Leftover material will be auctioned by a designated committee.
To ensure continued regional air connectivity, the MoU with Alliance Air for flights on the Shimla–Dharamshala–Shimla route was extended from July 1, 2025, to June 30, 2026.
For infrastructure development, a one-year extension was granted for land acquisition proceedings related to the Kangra Airport expansion, extending the timeline to August 16, 2026, under Section 26 of the RFCTLARR Act.
The Cabinet also approved the Draft Development Plan for Dhaulakuan Majra Planning Area in Sirmaur district, aimed at conserving natural resources and promoting sustainable development.
In administrative restructuring, it approved the reorganisation of Patwar Circle Naleti in Kangra district by excluding Mahal Masot and Balahar villages from Tehsil Dehra and merging them with Patwar Circle Garh in Tehsil Paragpur.
A detailed presentation on the issue of drug abuse in Himachal Pradesh was made by the Excise and Taxation Department, highlighting key challenges and the steps being taken to tackle the problem.
The Cabinet also constituted a Sub-Committee headed by Industries Minister Harshwardhan Chauhan to oversee the development of a 300-acre Medical Device Park at Nalagarh. The committee is expected to submit its report within two months.
These decisions form part of a focused governance effort during the second day of the four-day special Cabinet session.
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The HimachalScape Bureau comprises seasoned journalists from Himachal Pradesh with over 25 years of experience in leading media conglomerates such as The Times of India and United News of India. Known for their in-depth regional insights, the team brings credible, research-driven, and balanced reportage on Himachal’s socio-political and developmental landscape.
