The Himachal Pradesh Government has given its approval for raising the height of the Nathpa dam by five metres from its initial height. The requirement of Nathpa Dam is mainly the storage of water for hydroelectric power. By increasing the height of the Dam, the storage capacity is being increased capacity. The Sutlej Jal Vidyut Nigam is sponsoring this hydroelectric venture at Nathpa Dam. It is declared as a run-of-the-river project because of its incapability to meet the compulsory peaking power requirement.

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