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This is an archive article published on February 20, 2010

New hydel projects on hold in HP

With protests by the public gaining momentum,the Himachal Pradesh government has decided to put on hold its ongoing process for allotment of all new hydro-power projects,both mega and mini-micro.

New hydel projects on hold in HP

With protests by the public gaining momentum,the Himachal Pradesh government has decided to put on hold its ongoing process for allotment of all new hydro-power projects,both mega and mini-micro. A few of these projects have already been proposed for global competitive bidding.

The government’s decision also comes after a few private sector companies,called independent power producers (IIPs),had challenged a few clauses of the power policy relating to grant of free power share and payment of upfront premium.

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The fixed quota for free power is 12 per cent for the first 12 years,18 per cent up to 30 years,and 30 per cent up to 40 years. After 40 years,the project will be handed over to the government.

At least 15 mega hydel projects and more than 54 other projects in the mini and micro categories are awaiting new allotments. A few projects earlier cancelled by the government,including the 960-mega watt Thangi Thopan Powari project,are also slated for fresh bidding under the amended power policy.

“We have decided not to take up fresh allotments till the government is ready with its revised bid document,which is being finalised. Efforts have been made to make the document simple and transparent. It will be posted on our website very soon. We will welcome comments and suggestions from all stakeholders,” says Tarun Kapoor,Director,Energy.

Kapoor confirms that some IPPs,despite having signed deals with the government,have raised objections to a few clauses relating to free power share and the mode for payment of the upfront premium.

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“The new document will not leave any scope for this in the future. Since it is going to be posted on the official website,anyone can have an access to the document now,” he adds.

The document,say officials at the Himachal Pradesh State Electricity Board,also seeks to plug all loopholes that had earlier landed the government in serious troubles during evaluation of the companies. One such company was Brakel Corporation,whose contract was called off by the state’s high court last year.

Ajay Bhandari,Chief Executive Officer of HIMURJA,the agency that handles allotment and implementation of mini and micro projects,says new allotments will be done only after the bid-document is finalised and made transparent.

“The only exception will be the very small projects — 1 kilowatt to 1 MW,” he adds. These projects are reserved only for NGOs and village cooperatives.

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“Only locals,who have formed cooperatives will be sanctioned such projects. These will be primarily in form of gharats — traditional water mills. The Centre has a higher component of subsidy up to 80 per cent for this category. The projects being taken up in the areas close to international boundaries,such as Kinnaur and Lahaul-Spiti districts,will get a subsidy of 90 per cent,” says Bhandari.

The government has already received nearly 110 applications till now and the number may reach up to 200 by the end of this month,say officials.

More than 527 mini and micro projects have already been allotted,of which 26 have been commissioned with a capacity of 105 MW.

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