Dehradun, Feb 23 : Uttarakhand Chief Minister B. C. Khanduri on Monday ordered authorities to resume work on the 120 MW Vyasi hydel power project after a lapse of
16 years.

This project is to come up over the Tons Rriver, and is to be completed by December 2011.

The project cost is Rs. 758.59 crore and it would earn the revenue of Rs. 105.29 crore for the state.

On the occasion, Khanduri said the government is committed to formulating a rehabilitation policy for locals.

"The Government would give adequate compensation to the families, whose lands have been acquired for the project. The affected families would get one percent of the generated power for free as their share in the project," Khanduri said.

The project was started in 1979. In 1992, the government decided to close due to inadequate funds, though 40 percent of the work had been completed by then.

With just two days left for the last date for inviting bids for micro, mini and small hydel projects under its new power policy, the Uttarakhand Government has relaxed some of its conditions to entice more investments in the power sector.

The government has given relaxation in various conditions by 50 per cent. For those applying through the self-identified route, this relaxation is being given in net worth, turnover and cash components.

The state government is now trying hard to focus on its new power policy on micro, mini and small hydel projects in the hill state with a hope to generate 1,100 megawatts of electricity. (ANI)