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Financial Daily from THE HINDU group of publications Tuesday, September 18, 2001 |
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Opinion
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More power to hydel
FOR SOME REASON hydel power has not got the kind of attention it deserves. Not only is it more sustainable compared to fossil fuel-based power plants, barely 20 per cent of its estimated potential at 85,000 MW has been tapped. The hydro-thermal mix of ge
neration capacity, that ideally should be around 40:60, has shifted in favour of thermal generation, which accounts for over 70 per cent now. The hydel power sector has not taken off as it should despite the Centre formulating a policy in 1998 that provi
ded various incentives. And, as mentioned at a recent conference on hydropower, the sector deserves more attention.
Over the last few decades, the attention paid to hydel power generation has slackened. Some of the large hydro projects, such as the Sardar Sarovar -- which was meant to harness the irrigation and power generation potential of the Narmada to benefit Madh
ya Pradesh, Gujarat, Maharashtra and Rajasthan -- have got embroiled in controversies over the submergence of vast tracts of land, the ensuing displacement of large number of families, the lack of clear efforts by the State governments to resettle and re
habilitate the oustees, and doubts over the safety of the dams themselves.
Also, the private sector has not found hydel projects as attractive as those based on other fuels. The first private effort -- the 86 MW Malana project in Himachal Pradesh promoted by the LNJ Bhilwara group -- became operational only recently, with a tar
iff that is stated to be competitive. This project would hopefully explode the myths associated with hydel projects -- that they are highly capital-intensive and have a long gestation period. Rather than go for mega hydel projects, which attract the atte
ndant problems of displacement of people and their resettlement and rehabilitation, the States can try to involve the private sector in smaller projects -- of up to 15 MW -- as these would not displace people.
Foreign funding is available for such projects, which are also environmentally sustainable and economically viable. The Himalayan region and the North-East provide ample opportunities for setting up such projects, and this is what the Centre, through the
States and the National Hydroelectric Power Corporation, should pursue actively.
Large projects, besides facing the usual well-known problems, also throw up management issues, especially when several States are involved. That the States cannot decide on who will manage the project is evident from the delays over the setting up of fou
r projects along the Cauvery. Karnataka and Tamil Nadu, already at loggerheads over sharing the river water for irrigation, cannot seem to agree on who will manage them. With most private power projects getting stuck and the energy deficit mounting, it i
s time the Centre paid greater attention to increasing hydel generation capacity. Efforts need to be taken to ensure that all the projects lined up are completed at the earliest.
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Related links: Hydel power being neglected: Advani Stress on nuclear, hydel projects Ministry studying hydel fund mop-up options Comment on this article to BLFeedback@thehindu.co.in Send this article to Friends by E-Mail
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