HP seeks bids for hydro study; Awards 108 MW Chhatru project

Shimla, Aug 4 (UNI) The Himachal Pradesh Government has invited expressions of interest (EoI) to explore hydro-power potential in the state and awarded the 108 MW Chhatru hydel power project to DCM Shriram Consolidated Ltd (DSCL).

The study aims to strengthen the planning and management of hydro power in the state and increase revenues, while reducing equity needs and risk exposure, official sources told UNI here today.

The sources said consultants have been provided time until August 21 to submit their expressions of interest, to investigate hydro-power potential in the state.

A World Bank grant has been issued to help fund the development capacity study and the six-month assignment is scheduled to commence in October this year.

According to an estimate, development of the state's hydro potential could generate three per cent of the state's GDP by 2015. The sector could be a strategic source of revenue that would help in restoring the state's fiscal health and provide financial resources for infrastructure investment.

The hydro-project would have an installed capacity of 108 MW and would have a 40-year concession on the scheme, which is in the Chenab river basin, the sources said.

The Rs 700-crore build-operate-transfer contract for a hydro- electric project is envisaged to have up to 140 MW installed capacity and is one of the many hydro-projects envisaged for development in the Chenab basin.

The project involved design and construction of a 19-metre high barrage, creating a live storage of water, the sources said.

Under the state's new power policy, its previous entitlement to 12 per cent of a plant's output as a free royalty would continue for 12 years, stepping up to 18 per cent for the following 18 years and then 30 per cent until the end of a concession in the 40th year.

Thereafter, the assets would transfer to the state at no cost and without any liabilities.

UNI