The share of hydropower in the overall electricity output has declined from 44 per cent in 1970 to 19 per cent in 2012. The ideal hydro-thermal mix should be in the ratio of 40:60. Public sector hydro power utility NHPC runs 17 stations with total capacity of 5,702 MW. It has drawn up a target to add over 10,000 MW of hydropower capacity by 2022.

A. B. L. Srivastava, Director (Finance) of the Rs 20,542-crore worth company, talks about the impediments faced in the execution of these projects. Excerpts:

Hydro projects are not taking off in the country. What are the major challenges faced by the industry and how do you plan to address them?

The main reason for the delay is environment and forest clearances. Adding to it is agitations by local groups.

NHPC is actively pursuing various statutory clearances, especially environment and forest clearances. A dedicated team of experts on environmental issues are continuously following with the concerned quarters for approvals. NHPC has developed very strong in-house team of geo-scientists capable of taking up geotechnical investigations as well as providing geological support during construction. In addition, NHPC has also undertaken a number of CSR-CD initiatives for local residents.

How many of your projects are stuck because of delay in regulatory clearances from Government?

NHPC is awaiting Government approval for 10 projects of about 8,801 MW. Of these, five projects having capacity of 5,115 MW are to be implemented by NHPC alone and the remaining 3,686 MW through the joint venture route.

Some of the important projects are the 195-MW Kotlibhel-IA in Uttarakhand, where all clearances are available except Cabinet approval.

In Sikkim, the 520-MW Teesta-IV has received environment and forest Ministries’ Stage-I, in principal forest clearance in February.

Environment clearance proposal has been recommended by expert appraisal committee. Formal letter is awaited.

Another two projects — Tawang-I and II for 1,400 MW have been accorded environment clearance.

What are the projects in the pipeline for the current fiscal?

The current capacity of NHPC is 5,702 MW, which excludes 45 MW Nimoo Bazgo project in Leh, which has been synchronised with the local grid. But, the date of commercial operation is pending due to non -availability of load and six projects of 4,050 MW are at various stages of construction. During the remaining period of the current financial year, we are expecting to commission two projects — 240 MW at Uri-II in Jammu and Kashmir and 520 MW Parbati-III in Himachal Pradesh. In the XII Plan, our total expected capacity addition will be about 1,702 MW.

How will the capital expenditure be funded during 2013-14?

In the current fiscal, our construction budget is Rs 3,450 crore, of which Rs 1,831 crore has been planned under debt funding. Balance will come from our internal resources and subordinate debt from the Government. The debt portion will be raised from the market according to the suitability of time and market conditions either as term loan or in the form of bond.

What is the effect of monsoon on generation?

The generation of power from NHPC Power Stations is planned to utilise the available inflow in the rivers in the optimum manner. Based on the forecast of the monsoon by the Indian Meteorological Department, it is anticipated that the current monsoon season will be normal all over the country. NHPC hopes to achieve its generation target of 21,465 million units.

How are your plans to diversify into other sectors shaping up?

We are planning to enter into thermal power and discussions are going on with different States to formalise the same on a joint venture basis. We are looking for winds as well solar plants. For solar plant, we have signed a Memorandum of Understanding with the Uttar Pradesh New and Renewable Development Agency on August 8, for formation of joint venture company for implementing the 50-MW solar power project at Tehsil Kalpi, at Jalaun in Uttar Pradesh.

siddhartha.s@thehindu.co.in

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