The Hindu Business Line : New hydroelectric power policy soon: Shinde

IN LIGHTER MOOD: The Minister for Power, Mr Sushil Kumar Shinde, flanked by the Power Secretary, Mr R.V. Shahi (left), and the FICCI President, Mr S.K. Poddar, at a national seminar on `Hydropower: Harnessing the untapped potential' in the Capital on Thursday. — Kamal Narang

New Delhi , Jan. 4

The Government will come out with the new hydroelectric power policy within a month, the Union Power Minister, Mr Sushilkumar Shinde, said today. "The Cabinet note for the new hydro policy has been circulated and the Cabinet is expected to take a decision in the next 15 to 30 days," Mr Shinde said at a conference here.

"The country has a huge hydro potential of about 1,50,000 MW, of which only 33,600 MW has been harnessed. There is an urgent need for public and private participation for development of untapped hydro potential," he said.

Controversial Issues

Besides addressing the controversial rehabilitation issues, the policy is expected to outline measures to rope in more investments to tap the country's hydel potential, with an emphasis on making the sector attractive for private players, Government officials said.

Mr Shinde said the Power Ministry was giving highest priority to hydro projects and has simplified various procedures related to statutory clearances. The Government has also formulated a Mega Power Policy that provides concessions such as duty-free import of capital equipment, deemed export benefits to the domestic bidders and liberal income-tax holiday, he said.

The Power Ministry's move to have in place a new policy for the sector comes in the wake of developments in States such as Arunachal Pradesh and Uttaranchal, which have in recent months awarded projects to private players on the basis of factors such as the amount of free power and upfront premium.

The Centre hopes to streamline the award of hydro projects across States through broad guidelines to be given in the policy, officials said.