HP to encourage equity participation in joint ventures: CM

Shimla, Jul 4 (UNI) Himachal Pradesh would be encouraging equity participation in most of the higher capacity identified hydro electric projects and give preference to the public sector undertakings to execute such projects in joint venture.

This was stated by Chief Minister Prem Kumar Dhumal in a meeting with a high level delegation of National Hydro Power Corporation lead by Mr S K Garg, Chairman-cum-Managing Director of the Corporation.

The Chief Minister said that the state had identified about 21,000 MW of hydel potential out of which only about 6,500 MW had been harnessed while the efforts were afoot to achieve the target of generating about 50 percent of total hydro electric potential power by year 2012.

"Hydel potential is the major income generating sector of the state which is being exploited with ecological safeguards beside protecting the interests of the people who are contributing by providing their land and other permanent assets to pave the way for the completion of the projects," he said.

Mr Dhumal said the state would be encouraging the execution of high capacity hydro electric projects in the joint venture having maximum equity participation in the same.

He said the state would prefer public sector undertakings of the Government of India and State Government to undertake such projects where the state would negotiate for equity participation upto 49 percent.

He said the state had completed the 1500 MW Nathpa Jhakri Power Project successfully where equity participation of 25 percent had been obtained for the state while another 412MW Rampur Hydro Electric Project had 30 percent equity participation of the state which too was being executed by the Satluj Jal Vidyut Nigam Limited.

He said that on the analogy of such projects the state government would be negotiating with the power project executors to provide the state maximum equity participation so that maximum income was generated to the state exchequer to meet its developmental and social welfare requirements.

UNI XC PS VN1730