An inter-ministerial committee constituted by the Union power ministry to examine and resolve serious policy bottlenecks hampering development of hydropower has decided that policy initiatives be taken to level the playing field for hydro sector public sector undertakings like NHPC and SJVN Ltd. In a recent practice, states are allocating hydropower projects against payment of upfront premium. Since PSUs are not allowed to make such payment, they are unable to compete with private players for hydropower projects.
The timing of the decision assumes significance that the government is planning to divest 10% of its stake in hydro sector SJVN Ltd.
SJVN is expected to submit red herring prospectus for the proposed initial public offer (IPO) this week.
The panel has given the go-ahead to the power ministry to initiate process for seeking approval to policy changes required to level the playing field for hydro sector PSUs.
The panel has also decided that states should play a more active role in facilitating issuance of statutory approvals and tackling problems relating to land acquisition for hydropower projects.
Besides, the committee has also decided that the central electricity authority (CEA) should streamline its procedures to ensure issuance of techno-economic clearances to hydropower projects in four months from the date of submission of detailed project reports (DPRs).
The committee, task force for hydropower development, has taken these decisions in its meeting held on Tuesday. The meeting was held under the chairmanship of Bharatsinh Solanki, minister of state for power, and attended by Deputy chairman of Planning Commission Montek Singh Ahluwalia, minister of environment and forest Jairam Ramesh, minister of water resources Pawan Kumar Bansal and minister of rural development CP Joshi.
