Hydro potential to be developed in time-bound manner

New Delhi, Nov 28 (UNI) A new policy is being framed to facilitate the time-bound development of hydro potential in a transparent manner in the country, particularly in the Himalayan States, Power Minister Sushilkumar Shinde today announced in the Lok Sabha.

Responding to a calling attention motion in the House on the situation arising out of handing over of some hydel projects in Arunachal Pradesh to private parties, moved by CPI-M leader Basudeb Acharia, Mr Shinde said his Ministry was committed to the expeditious development of hydro-capacity in the country.

Hydro-electric potential in the country was estimated at 1,50,000 MW of which only about 33,500 MW had been developed.

He said most of the undeveloped hydro sites were located in the Himalayas, more particularly in the North-East, and massive resources -- both financial and managerial -- were required for harnessing hydro power.

Inspite of creating a number of hydro central public sector units and also bringing the National Thermal Power Corporation into hydro development, it was found that the task could not be accomplished by the CPSUs alone and there was need for involvement of the private sector, he said.

Mr Shinde said that in the recent past, a number of states had started allocating hydro projects to private developers on build, own, operate and transfer (BOOT) basis. Till now, about 35 projects with an estimated capacity of about 10,000 MW had been allocated to the private sector by the Himalayan States.

The Arunachal Pradesh Government had also recently allocated five large projects of capacities ranging from 500 to 1600 MW to private companies on considerations such as quantum of free power to the host State, free equity to the state and return of the project to the State after 40 years.

Mr Shinde said these included two projects, 1000 MW Siang Middle (Siyom) and 1600 MW Siang Lower, being prepared by the NHPC which were allocated to private developers.

After his intervention, the Arunachal Pradesh Government had asked the private developers to reimburse to NHPC the costs incurred in the preparation of the Detailed Project Reports (DPRs), he informed.

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