28-Aug-2018: MoU signed for construction of Lakhwar Multipurpose Project on Yamuna near Dehradun
Shri Nitin Gadkari, Union Minister for Water Resources, River Development and Ganga Rejuvenation signed a Memorandum of Understanding (MoU) with the Chief Ministers of Uttar Pradesh - Shri Yogi Adityanath, Rajasthan - Smt. Vasundhara Raje , Uttarakhand -Shri Trivendra Singh Rawat, Haryana- Shri Manohar Lal, Delhi - Shri Arvind Kejriwal, and Himachal Pradesh - Shri Jai Ram Thakur in New Delhi for the construction of Rs. 3966.51 crore Lakhwar Multi-Purpose project in the Upper Yamuna Basin.
The problem of water shortage in all six States will be resolved once the project is complete as water flow in River Yamuna will improve in dry season from December to May/June every year. Gadkari said, more such projects, especially the ones which are stuck for several years due to lack of consensus amongst States, will take off.
The Lakhwar project was initially approved in 1976 but work on the project was suspended in 1992. The Lakhwar project envisages construction of a 204 m high concrete dam across river Yamuna near Lohari village in Dehradun district of Uttarakhand with a live storage capacity of 330.66 MCM. This storage will provide irrigation for 33,780 hectares land and availability of 78.83 MCM water for domestic, drinking and industrial use in the six basin states. The project will also generate 300 MW of power. The project is to be executed by M/s Uttarakhand Jal Vidyut Nigam Limited (UJVL).
Reiterating that the focus is also on abating pollution in River Yamuna under Clean Ganga Mission, Shri Gadkari said that 34 projects are being taken up on the river out of which 12 are in Delhi which will ensure that the water going to Haryana and Rajasthan is Nirmal. While Lakhwar project will provide adequate water to all six States, the interventions being made under Namami Gange programme will ensure pollution abatement in Yamuna serving the twin purpose.
Shri Gadkari said that the problem is not water shortage but water management and the Government is taking steps in this direction. He added that Lakhwar project will not only ensure water availability but also improve irrigation, generate electricity and fulfil the drinking water needs of all six States.
Chief Minister of Uttar Pradesh Shri Yogi Adityanath thanked the central government for reviving this 42-year old project. He said that Lakhwar project will create irrigation potential besides generating electricity.
Out of the total Lakhwar project cost of Rs. 3966.51 crore, the power component of Rs. 1388.28 crore will be borne totally by the Uttarakhand government. Uttarakhand will also get the benefit of total power generation once the project is complete.
Out of the remaining cost of Rs. 2578.23 crore which form the irrigation and drinking water components, 90% will be borne by the Centre (Rs. 2320.41 crore) and 10% will be divided between the States of Haryana -Rs.123.29 crore (47.82%), Uttar Pradesh/ Uttarakhand -Rs. 86.75 crore (33.65%), Rajasthan-Rs. 24.08 crore (9.34%), NCT Delhi -Rs. 15.58 crore (6.04%) and Himachal Pradesh -Rs. 8.13 crore (3.15%).
Storage created as a result of implementation of Lakhwar project will be shared by the basin States in proportion to their overall annual allocations as given in the mother MoU signed between the six states on 12.05.1994. Allocation of water from storage created by Lakhwar Dam Reservoir will be regulated by UYRB as per this MoU. Except the sharing of stored water all other resultant economic benefits including generation of hydropower due to construction of the dam are assigned to the State of Uttarakhand.
Uttarakhand, Uttar Pradesh, Himachal Pradesh, Haryana, Rajasthan and Delhi are the six Upper Yamuna Basin states. Upper Yamuna refers to the stretch of River Yamuna from its origin to the Okhla Barrage in Delhi. The six states had signed a Memorandum of Understanding on 12th May 1994 regarding allocation of surface flow of River Yamuna. The agreement had recognized the need to create storage facilities in Upper Yamuna Basin to conserve and utilize the monsoon flows of the river in a regulated manner. The MoU had also laid down the interim seasonal allocation of the annual utilizable flow of the river pending creation of the storage facilities.
Besides Lakhwar Multi-Purpose project for which the MoU was signed today, there are two other major projects being envisaged in the Upper Yamuna reaches which are Kishau Multi-Purpose project and Renukaji Multi-Purpose project. A fourth project is the Vyasi project, a run-of-the-river scheme under which a concrete dam across River Yamuna is being constructed near Vyasi village in Dehradun district. The Vyasi project is scheduled for commissioning by December 2018.
The Kishau Multi-purpose project which includes construction of a 236 m high concrete dam across River Tons, a tributary of River Yamuna in Dehradun district with a live storage capacity of 1324 MCM, will create irrigation potential of about 97000 hectares, make available 517 MCM drinking water and generate 660 MW of power. The Renukaji Multi-Purpose project which has been conceived as a storage project on River Giri, tributary of Yamuna, in Sirmour district of Himachal Pradesh, envisages construction of 148m high rock filled dam for supply of 23 cusec water to Delhi and generate 40 MW of power during peak flow.
As per the MoU of 1994, separate agreements will have to be done between the six basin states for each water storage project in the Upper reaches of River Yamuna. After completion of all these storage projects in Upper Yamuna Basin (including Lakhwar), the total benefits in terms of additional irrigation potential created will be 130856 hectares, water availability for various uses will be 1093.83 MCM and power generation capacity will be 1060 MW.
1-Aug-2018: Cabinet approves Extension of Concessional Financing Scheme (CFS) to support Indian Entities bidding for strategically important infrastructure projects abroad
The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved the first extension of Concessional Financing Scheme(CFS) to support Indian Entities bidding for strategically important infrastructure projects abroad.
Details: Under the CFS, the Govt. of India has been supporting Indian Entities bidding for strategically important infrastructure projects abroad since 2015-16. Since the objectives of the Scheme continue to be relevant, it is proposed to extend the Scheme for another five years from 2018 to 2023.
Financial Implications: Financial implication is towards payment of Interest Equalization Support (IES) to the lending Bank for which budgetary provision will be made by the Department of Economic Affairs every year, as follows:-
|
Year |
2018-19 |
2019-20 |
2020-21 |
2021-22 |
2022-23 |
Total |
|
IES Amount (In US$ million) |
6.5 |
10.00 |
18.75 |
29.00 |
32.00 |
96.25 |
|
IES Amount (In INR crore) |
42.25 |
65.00 |
121.88 |
188.50 |
208.00 |
625.63 |
Note: The estimated IES is in respect of existing project only.
Major Impact: Prior to the introduction of CFS, Indian entities were not able to bid for large projects abroad since the cost of financing was very high for them and bidders from other countries such as China, Japan, Europe and US were able to provide credit at superior terms, i.e., lower interest rate and longer tenures which works to the advantage of bidders from those countries.
Also, by having projects of strategic interest to India executed by Indian entities, the CFS enables India to generate substantial backward linkage induced jobs, demand for material and machinery in India and also a lot of goodwill for India.
Implementation Strategy and Targets: Under the Scheme, MEA selects the specific projects keeping in view strategic interest of India and sends the same to Department of Economic Affairs (DEA).
The strategic importance of a project to deserve financing under this Scheme, is decided, on a case to case basis, by a Committee chaired by Secretary, DEA and with members from Department of Expenditure, Ministry of External Affairs, Department of Industrial Promotion and Policy (DIPP), Department of Commerce, Department of Financial Services and Ministry of Home Affairs. The Deputy National Security Adviser is also a member of this Committee. Once approved by the Committee, DEA issues a formal letter to EXIM Bank conveying approval for financing of the project under CFS.
The Scheme is presently being operated through the Export-Import Bank of India, which raises resources from the market to provide concessional finance. Government of India (GoI) provides counter guarantee and interest equalization support of 2% to the EXIM Bank.
Background: The scheme envisages Government of India to provide counter guarantee and interest equalization of 2 % to EXIM Bank to offer concessional finance to any foreign Govt. or foreign Govt. owned or controlled entity, if any Indian entity, succeeds in getting contract for the execution of a project.
Under the Scheme, EXIM Bank extends credit at a rate not exceeding LIBOR (avg. of six months) + 100 bps. The repayment of the loan is guaranteed by the foreign govt.
15-Jul-2018: PM in Mirzapur, dedicates Bansagar Canal Project to the Nation
The Prime Minister, Shri Narendra Modi, dedicated the Bansagar Canal Project to the Nation in Mirzapur. This project will provide a big boost to irrigation in the region, and will be greatly beneficial for the farmers of Mirzapur and Allahabad districts of Uttar Pradesh.
Shri Narendra Modi laid the Foundation Stone of the Mirzapur Medical College. He inaugurated 100 Jan Aushadhi Kendras in the State. He also dedicated a bridge over the River Ganga at Balughat, Chunar, which will facilitate connectivity between Mirzapur and Varanasi.
Speaking on the occasion, the Prime Minister said that the area of Mirzapur holds immense potential. He recalled his last visit to Mirzapur, with French President Macron, for the inauguration of the solar plant.
The Prime Minister mentioned the various development projects and works that he has either inaugurated, or laid the Foundation Stone for, over the last two days.
He said the Bansagar project had been first conceptualized about four decades ago, and the Foundation Stone was laid in 1978, but the project was unduly delayed. He said that after 2014, this project was made a part of the Pradhan Mantri Krishi Sinchai Yojana, and all efforts were made to complete it.
Talking about measures taken for the welfare of farmers by the Union Government, the Prime Minister also mentioned the recent increase in MSP for Kharif crops.
He spoke of the measures taken to provide affordable healthcare to the poor, including Jan Aushadhi Kendras. He said the Swachh Bharat Mission is also proving effective in controlling disease. He said the health assurance scheme - Ayushman Bharat would be rolled out soon. He also spoke of other social welfare schemes of the Union Government.