National hydro policy by Dec

He said the draft policy was ready and under various stages of finalisation. Views of experts, including those from organisations like CII and IFFICI, were being incorporated.

Inaugurating a two-day national seminar on hydel power here, Kumaramangalam said he wanted the proposed policy to be a “living document” for all future power development programmes and also meeting the shortfall in power.

A proposal to set up a central power trading corporation was already under consideration with the Centre and a ministerial group was working on it to finalise its modalities. A demand for this was made by Chief Minister Prem Kumar Dhumal in his address at the seminar.

Kumaramangalam fully endorsed Himachal’s demand for levying generation tax on hydel power generating projects in the state and also expressed surprise over the previous Central government decision to withdraw 50 per cent subsidy on mini and micro hydel projects.

“I see no justification in continuing subsidy on mini, micro hydel projects in North-East but discriminating Himachal or other states,” he remarked. He would personally pursue the matter, he added.

On power generation tax, on which Prime Minister Atal Behari Vajpayee has already given an assurance, the Union Minister said “individually, I am in its favour and the state would have a right to levy such a tax unless it makes the hydel project unviable.”

While responding to Dhumal’s plea for inclusion of projects up to 20 MW capacity in mini and micro category besides restoration of subsidy, Kumaramangalam said he had cleared the proposal to include projects up to 25 MW capacity in small and micro-hydel segment. Provision of granting loans at concessional rates from power finance corporation for execution of hydel projects had also been made, he said.

He said the Centre would provide assistance to the states in preparation of the projects and was also ready to allow them to execute works in hydel sector on “build, operate and transfer” principle.He assured that he would hold a meeting with state CM on standardisation of documents, simplification of the power purchase agreement (PPA).Kumaramangalam favoured run-of-the-river projects since they posed fewer problems regarding rehabilitation of uprooted families as compared to big dams.

Earlier, speaking at the seminar, CMdrew Kumaramangalam’s attention towards the shortage of funds needed to exploit the state’s potential of 20,000 MW power generation and sought liberal financial aid from the Centre for the state’s hydel generation programme.

Dhumal also referred to the government’s proposal to levy generation tax to raise its resources. Central PSUs should be asked to actively associate with the state either in joint ventures or on their own to take over some of the projects, he added.

The Chief Minister also expressed concern over delay in central electricity authority (CEA) clearances.

Former minister and sitting MLA Sukh Ram spoke on bottle-necks causing delays in execution of the hydel projects in the state. These, he said, were leading to cost escalation and would make hydel power unviable if speedy programmes were not taken up.

Sukh Ram cautioned the NJPC against shifting its offices from Shimla or ignoring the problems of engineers and the HPSEB staff.

He made a plea for compensating the state for the loss to its green cover on account of commission of projects and laying of transmission lines.

Sukh Ram asked the Union Minister to provide funds from the BBMB to the state for controlling soil erosion and demanded restoration of subsidy on mini and micro projects.

Over 300 delegates from the country, besides chairman of HPSEB, NJPC, NHPC, NTPC and Power Grid Corporation, are attending the seminar.

HPSEB chairman A. K. Goswami welcomed the delegates and gave details of power generation programme in the state.