The power ministry, in a serious bid to give a much-needed push for the development of hydro-power projects in the country, proposes to create shelf of detailed project reports (DPRs) for such projects. The need for creation of shelf of DPRs is very important as the availability of bankable DPRs will enhance competition, obtain lower tariff and cut-off the project cost.
The ministry?s initiative is crucial, despite India has an estimated hydro generating potential of about 1,50,000 mw, only a little over 35,000 mw has been developed so far. 45 hydro projects aggregating to a capacity of over 15,000 mw are presently under construction while another 120 projects aggregating to an installed capacity of over 48,000 mw are under various stages of survey and investigation.
Sources told FE that the bulk of the potential yet to be developed is along the Himalayas that is in the hill states of Jammu & Kashmir, Himachal Pradesh, Uttarakhand and the North East. ?It is, therefore, imperative that the development of vast hydroelectric potential is tapped expeditiously as the power sector is the key driver of economic growth. Therefore, there is an urgent need to substantially enhance power availability at a rapid pace, which is crucial for the development and prosperity of the country,? sources said.
Sources recalled that the Centre has already announced a new policy to attract more investments in the hydroelectric power sector. The policy envisages that the developers will provide money equivalent to 1% of power generated from the project to a fund managed by the district authorities. The funds will be further used for the development of the area affected by the project. The state government will give a matching grant from the 12% free power given to it by the developer. Locals affected by the project will have a say in the use of the fund.
The new policy also mandates that 100 units of free electricity per month be given to the families affected by the project in the last 10 years. The families will be free to consume this power or sell it. The policy has also introduced penalties for delays. If the developer is not able to complete the project within four years of its financial closure, the quantum of power available for sale as merchant power will be reduced from 40% to 35%.