The Hindu Business Line : New hydel power policy soon

The Government said on Tuesday that it plans to come out with a new hydel power policy for ensuring time-bound development of hydroelectric projects and attracting increased private sector investments into the sector. Replying to a Calling Attention Motion in the Lok Sabha on the situation arising out of handing over of some hydel projects in Arunachal Pradesh to private parties where State-owned National Hydroelectric Corporation (NHPC) had already carried out preliminary investigative works, Power Minister, Mr Sushil Kumar Shinde, assured the House that full transparency will be maintained in allocation of projects to both private developers and public sector utilities.

Mr Shinde told the House that the matter has been taken up with the State Government for reimbursement of costs incurred by NHPC in preparing the Detailed Project Reports (DPRs) of two particular projects.

Members had expressed concern over the Arunachal Pradesh Government's decision to handover two hydel projects to private developers for which NHPC had conducted DPRs spending close to Rs 100 crore.

The Arunachal Government had handed over two projects - namely 1000 MW Siang Middle (Siyom) and 1600 MW Siang Lower - to two private developers Jai Prakash Associates and Reliance Energy.

Raising the matter, CPM's Mr Basudeb Acharya and BJP's Mr Tapir Gao had demanded that these projects should be taken back from the private developers and handed back to NHPC.

Mr Shinde said he had taken up the matter with the State Government and, subsequently, as many as five projects totalling 8,100 MW have been allocated to NHPC, two projects for 4,500 MW to NTPC Ltd and two more projects to NEEPCO for 1,200 MW.

"Arunachal Pradesh has also informed NHPC that the private developers have been asked to reimburse to NHPC the costs incurred in the preparation of DPRs," he said.

Responding to a query by Mr Tapir Gao on whether the Government was exploring the possibility of legal action against the private players, the Minister said "NHPC had neither approached the Ministry nor does it require any permission from the Ministry of Power to decide on such matters which relate to commercial interests."

Mr Shinde said there was a huge potential for hydel power development in the Himalayan States especially in Arunachal Pradesh and PSUs alone cannot accomplish the task in view of huge investments involved. "We need private sector also in the development of hydel power and with the new policy I am sure there will be coordination among all stakeholders for the development of hydel power in the country," he said.