Centre comes up with new hydro policy to make small power project viable

The Union Government decided to bring up new hydro power policy to expeditiously harness that remains unharnessed potential in the country and to bring down its cost of production and delay in commissioning of new projects.

Stating this in a workshop held today on the Hydro power project, the Joint Secretary Power Mr. Tarun Kapoor announced that despite having 15000 ton power potential to generate renewable small hydro power in the this hill state as it could harness only 4350-4500 mw power so far. He said that power project having 25 mw generation capacity fall in small category however due to lack of interests by the power producers to come up for taking over these projects state remained fail to allot these project.

He said that the high costs of production owing to increase the cost of project due to delay in the environment clearance and increasing in time to provide funds to the Panchayat the potential could not be harnessed. The Centre and State Government would try to support new power projects with making environment clearance less hassle free and bringing down the rising costs of the projects.

We could not do away with the environment and forest clearance but the Center would simplify the cumbersome environment clearance procedure so that it could be made hassle free to reduce the delay in its commissioning, he said. The State and Center would work to come up with hydro power policy so that renewable power could be made more competitive in the market. There was slowdown in the hydropower market due to less demand and price parity which also eludes the new power producers in the State and also delayed project. Centre would intervene after adopting open bidding for sale of renewable hydro power.

Himachal Pradesh power minister Mr. Sujjan Singh said the State and Centre would allot more power projects after bringing change in the hydropower policy and attract more power producers in the State. He said that the Centre appreciated the state efforts to harness the hydro-power policy and allot more projects.