IMPORTANT POINT
Mushrooming of Hydroelectric power projects in Uttarakhand is a matter of great concern. Directions given.

JUDGMENT

K.S. Radhakrishnan, J.

1. Leave granted.

2. Srinagar Hydro Electric Project (SHEP) located in Tehri / Pauri Garhwal district of Uttar Pradesh was a project envisaged by the then Uttar Pradesh State Electricity Board (UPSEB) on river Alaknanda, which was basically run-of-the-river scheme.

3. The Techno-Economic approval of the scheme was granted for 200 MW by the Central Electricity Authority (CEA), a competent authority exercising powers under Section 29 of the Electricity (Supply) Act, 1948, in its meeting held on 6.11.1982, subject to the environmental clearance from the Ministry of Environment. SHEP was later segregated from twenty two other Ganga Valley projects. A separate Environment Impact Assessment (EIA) was made on the SHEP on 9.2.1985. No adverse affect had been noticed on environment in that assessment on setting up of the Project. On the contrary, it was felt that such a scheme would add to the richness of the scenic beauty by creation of beautiful lakes attracting more tourists and also meet the energy requirements of the State and could be completed within a short span of five years. Dhari Devi Temple, it was noticed, was likely to be submerged in water, therefore was also considered while considering the Environmental Impact Assessment (EIA). It was suggested that temple would be raised and created with a pleasing architecture suiting the surroundings.

4. The Ministry of Environment and Forest (MoEF) granted Environmental Clearance for the project to UPSEB vide its letter dated 03.05.1985 subject to certain safeguards. The project involved diversion of forest land to the extent of 338.38 hectares which was cleared by the Forest Department vide proceeding No. 8-227/86-PC dated 15th April, 1987, in accordance with Section 2 of the Forest (Conservation) Act, 1980. The Project involved construction of concrete gravity dam affording a gross storage of 8 Mcum water conductor system designed for 660 cumecs and a power house with an installation of six units of 55 MW each. UPSEB later carried out a detailed study and submitted a report stating that taking into consideration the peaking capacity, the installed capacity of the project would be increased from 200 MW to 330 MW. CEA approved and granted the Techno-economic clearance in the enhanced capacity of 330 MW vide its letter dated 18.12.1987. Planning Commission vide its letter dated 29.01.1988 accorded the investment approval. UPSEB started the work but due to the paucity of funds the project could not make any effective progress.

5. The Government of India, in the meanwhile, had liberalized the policy to encourage private participation in power development. Consequently, the UP Government following the above mentioned policy decided to invite private investment in the development of energy sector especially with regard to the Srinagar Hydro Electric Project. Consequently, the State Government had entered into a Memorandum of Understanding (MOU) with M/s Duncan Industries Ltd. on 27th August, 1994 for development of the project and in terms of the MOU, M/s Duncan Industries Ltd. had established a generating company ‘Duncan North Hydro Power Co. Ltd.’. The project was an ongoing project and most of the infrastructure required for the execution of the project had already been arranged by the State Government. The Department of Energy and Government of Uttar Pradesh then wrote to the Mo EF by letter dated 04.09.1997 to transfer the environmental clearance earlier granted to the UPSEB to the Duncans so that the safeguards against environmental degradation while clearing the project might be implemented by the Duncans.

6. M/s Duncan submitted a revised EIA report and DPR to the MoEF on 25.01.1996 and it was also conveyed that the project of the enhanced capacity of 330 MW had to be transferred to the Duncans. MoEF following the letters dated 25.01.1996 and 18.06.1998 on the subject transferred environmental clearance to Duncans for 330 MW on 27.07.1999 subject to the