Shimla, Aug 24 - The central government has decided to develop two Himachal Pradesh towns as solar cities and two educational institutes as energy parks, an official said Monday.

Union Minister for Renewable Energy Farooq Abdullah informed Chief Minister Prem Kumar Dhumal about the government's decision at a meeting here.

'The central government has agreed in principle to develop Shimla and Hamirpur towns as solar cities and the Dr.Y.S. Parmar University of Horticulture and Forestry at Nauni in Solan district and the National Institute of Technology at Hamirpur as energy parks under the Ministry of New Renewable Energy's programmes,' said the statement.

'The union ministry would also extend assistance to the state government to execute mini and micro hydroelectric projects in the state.'

Himachal Pradesh has identified 23,185 MW hydro potential in the state. The state has a target to commission 1,075 MW capacity projects by 2014.

As many as 292 micro projects up to 5 MW have been allotted during the past one year of which 273 projects, with aggregate capacity of 456 MW, have been allotted to those entrepreneurs who are natives of the state.