World News: World Bank drops funding for hydro power project on Sutlej, environmental groups rejoice (10 April 2014)

World Bank drops funding for hydro power project on Sutlej, environmental groups rejoice
NEW DELHI: Local people and environmental activists under the banner of Sutlej Bachao Jan Sangharsh Samiti celebrated the victory of their campaign to save river Sutlej after the World Bank dropped funding for the controversial Luhri Hydro project in Himachal Pradesh. The World Bank, which was to provide a USD 650 million to the project, on its website indicated the status of the project as "dropped." 

According to a statement issued by the South Asia Network of Rivers, Dams and People (SANDRP) on Friday, World Bank's decision comes after an appraisal by an USAID team that reviewed the environmental and social impacts of the project. The team had visited last November and interacted with stakeholders like the project developer, World Bank, affected people organisations like Himdhara Collective in Himachal Pradesh and SANDRP in Delhi, said the statement. The total cost of the project is 1150 million dollars. 

Nek Ram Sharma of the Satluj Bachao Jan Sangharsh Samiti said, "This will boost the confidence of local people in deciding their own future." The samiti which has challenged the environment clearance (EC) granted to the project last year. They were concerned about the environmental impacts of the proposed 38 kms long tunnel to be constructed as part of the project. 

In response to submissions by the samiti and groups like SANDRP and Himdhara the project capacity was reduced from 775mw to 612mw by MoEF earlier. However, objections were raised again with the government in March 2013, they demanded scrapping of the project. 

"We have been under constant pressure from the administration to support this ecologically disastrous project. It is time that our governments wake up and realize the magnitude of the crisis that is unfolding as a result of Hydro projects," said a statement from Himdhara, a local group on Friday.

source from: http://timesofindia.indiatimes.com/home/environment/developmental-issues/World-Bank-drops-funding-for-hydro-power-project-on-Sutlej-environmental-groups-rejoice/articleshow/33668283.cms