Centre for greater private participation in hydel projects

The Union Cabinet on Thursday cleared the new hydel power policy, which, among other things, proposes to hike the quantum of free power...

The Union Cabinet on Thursday cleared the new hydel power policy, which, among other things, proposes to hike the quantum of free power to be given to the respective states from 12 to 13 per cent where the project is to be set up.

As per the modified policy, which aims at facilitating greater private sector participation, the income from the additional one per cent free power from the project would go specifically towards local area development and would provide for welfare schemes meant for project-affected people.

As displacement and providing compensation for project-affected people are crucial bottlenecks in implementing hydel power schemes, the additional funds from the increase in the quantum of free power would help to tide over these issues.

In a separate decision, the Cabinet cleared the decks for implementing the first phase of Rajiv Gandhi Grameen Vidyutikaran Yojana in the XIth plan at an estimated cost of Rs 28, 000 crore.

Apart from giving nod to investments for phase I of the RGGVY scheme for the XIth Plan, the Cabinet also approved a slew of conditions aimed at ensuring better monitoring and implementation of the village electrification scheme.

According to estimates provided by the Power ministry, the entire investments needed for RGGVY (phase I and II) works out to be Rs 49,000 crore and till now (upto the end of the Xth Plan), the Government has spent around Rs 6,000 crore.

The Government plans to provide electricity to 1.15 lakh villages and also provide connections to 2.34 crore households by 2009.

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It has also approved an increase in the reimbursements for providing free connections to BPL families from Rs 1,500 to Rs 2,200 per household.