The Himachal Pradesh chief minister, Mr Prem Kumar Dhumal, has asked the Central Government, to bring the Nathpa Jhakri Power Corporation (NJPC) under the ambit of National Hydro Electric Power Corporation (NHPC). NJPC is setting up a 1,500 MW hydel power project, which has faced undergone huge cost overruns and delays in commissioning.

In letters to the Prime Minister, Mr Atal Bihari Vajpayee and Union power minister, Mr Suresh Prabhu, Mr Dhumal has stated that either NJPC be made a fully-owned subsidiary of NHPC or be converted into a joint venture with NHPC.

In his letters, Mr Dhumal has stated that if the project is not brought under the ambit of NHPC, the state government would pull out of the project. According to Mr Dhumal, power generation from the project could be expected from March 2003, if the project management is handed over to NHPC.

NJPC was originally conceived in 1989, as a 75:25 joint venture project between the Centre and the state government. The project cost has gone up from the original estimated cost of Rs.1,678.02 crore in 1989, to Rs.4,337.95 crore in 1993 and further to Rs.7,666.31 crore in 1997 and finally to the current cost of Rs.9,500 crore.

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