Recently, World Bank approved Climate Investment Funds for India to the tune of US$775 million. One of the projects that will be supported from this is Himachal Pradesh Development Policy Loan to the tune of US$200 million. The main objective of the Development Policy Loan will be to accelerate hydro power development in the state. As mentioned in the India's Climate Investment Plan:
"Himachal Pradesh is one of the leading hydropower states in India and hydropower (large and small) by far dominates its renewable energy resource potential. Himachal Pradesh is among the few states which has streamlined and crystallized the various procedures to minimize the bottlenecks and has come up with an investor friendly hydropower policy to attract private sector investment. The intent would be to implement a framework that would spur hydropower development, from its current level of 31 percent to 70 percent, within 10 years, which would be a remarkable achievement that could serve as a model for other hydropower states in the country, and in the South Asia Region. The project presents a strong CO2 emissions reduction potential."
Development policy Loans, I believe, are like blank checks which the World Bank gives to countries without any checks and balances asking how the money is spent. Unlike World Bank and ADB projects these do not even carry any baggage of undertaking environmental impact assessment. It is very clear that the World Bank is giving a Rs. 1000 crore blank check to the Himachal Pradesh Government to accelerate hydro development. This will come at huge environmental and social costs. While we welcome the CO2 emission reduction potential of hydro power projects, in Himachal Pradesh they have come at huge cost as illustrated by the recent report of Manshi Asher on the Luhri project. This should not go on. We in water community have to put an end to this.
Report Courtesy : Ministry of Environment and Forests
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