Himachal's 'Innovative' Hydro-Power Policy
Vishal Singal
Ashwani Sharma, Express India
http://cities.expressindia.com/fullstory.php?newsid=215852
Shimla, January 2: THE hydel projects in Himachal Pradesh - the state
with an identified potential to generate 21,000 MW power - will be
allotted to private investors and other independent developers on a
Built-Own-Operate and Transfer (BOOT) basis.
Kicking off the new year with the release of the state's innovative
power policy - much ahead of the one being proposed by the Centre -
the Chief Minister Virbhadra Singh outlined an ambitious plan to
attract an investment of Rs 80,000 crore in the next 10 years. The
policy is also a major shift from the earlier trend of allotting the
projects on BOOM (Built-Own-Operate and Maintain) basis.
Beside generating new employment avenues for the locals, who will get
70 per cent job reservation, the policy also envisages to meet the
country's growing demand for quality power and making it one of the
biggest revenue resources of the state. For the first time, a clause of
charging an upfront premium at the rate of Rs 10 lakh per MW has also
been levied on the companies.
All the projects up to 2 MW have been reserved for Himachalis. The
policy also lays down the toughest regulatory measures for private
companies, which will be required to maintain a minimum flow of 15 per
cent of the water from the diversion structures. This principle is
included in the policy to address issues pertaining to riparian rights,
drinking water, health, aquatic life and fisheries and even to honour
sensitive issues like cremations and other religious rites on the banks
of rivers.
After 40 years,the projects would revert back to the state and the
state would get royalty ranging between 12 per cent and 30 per cent
free power from the projects. The state will also have a right to
equity participation up to 49 per cent in the projects above 100 MW.
The investors would also be required to spend 1.5 per cent of the
project's cost on the development works in the affected areas through
the Local Area Development Committees (LADCs).
The policy says the projects up to 100 MW will be allotted to the
developers through the MoU route while those above 100 MW through
competitive global bidding. Himachalis will get priority for projects
up to five MW.
The environmental issues have been regarded as key areas of concern to
strike a critical balance at the local levels, beside ensuring
protection of the fragile hill ecology. Herein after, the government
proposes to set up a hydro project safety authority, besides ensuring
measures for quality control and management of water flow.
Even the muck, boulders and stones generated in the construction of the
project will be allowed to be used free of cost by government agencies
like the PWD and IPH and also private crushers. That will solve the
problem of dumping of waste material - normally thrown on the hill
slopes, forest land or into the rivers.
Focussing on major policy initiatives, power minister Vidya Stokes, who
was also present on the occasion, said a major thrust had been given on
promoting huge private sector investments in hydel generation, besides
safeguarding the economic interests of Himachalis. She said the state
was heading as a torchbearer for the country to provide power at the
most affordable rates.
J P Negi, principal secretary (power), who happens to be an architect
of the policy, termed it as an innovative and dynamic document of the
state's growth and the harnessing of its huge power potential.
Vishal Singal
Singal Hydel Consulting SHC
"Power House" # 892, Sector 12
Panchkula 134 112, HRY INDIA
Tel +91 9888188891, 9888288892
E-Mail: singa...@yahoo.com
Web: http://www.himurja.com
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