Hydro power projects in various states on the India-China border would be put on fast track now. The Centre has mandated the power ministry to facilitate foreign participation in hydro power projects in sensitive areas. However, the power ministry would work in tandem with the ministry of home affairs in view of infiltration and insurgency problems in such areas.
The Centre?s decision is crucial as the upcoming hydro projects are planned on the India-China border and a large number of Chinese companies are expected to participate in the international competitive bidding process.
During his current China visit, Prime Minister Manmohan Singh has also asserted that Chinese investors be given an opportunity to pick up stakes in Indian businesses. Singh?s talks with his couterpart on cross-border cooperation has so far been positive.
Sources said to begin with, the power ministry would put up a proposal for the approval of the Kotli Behl 1A, 1B and Kotli Behl-II hydro projects. The power ministry would prepare the proposal in consultation with the home ministry.
Earlier, the power ministry had referred to the home ministry seeking its opinion on allowing Chinese participation in these projects and also in other projects owing to security reasons.
The power ministry would solicit approval from the Cabinet committee on security on a set of generic guidelines to be drawn up in consultation with the ministries of home and external affairs for participation of foreign companies in hydro projects in sensitive areas. Subsequently, the home ministry would expedite the finalisation of the sub-committee reports on FDI guidelines separately.
The power ministry is seeking to achieve a 50,000-mw capacity addition in the hydel power sector.