The Power Ministry is planning to formulate a new policy which will revive small hydro power projects in the country, said Union Power Minister Piyush Goyal at a conference organised by FICCI.
Goyal said a large number of small hydro projects have been delayed due to various regulatory approvals and other issues. The policy will aim to remove all the bottlenecks in the implementation of the projects. Efforts are also on for reviving large hydro projects such as the Teesta project in Sikkim, Maheshwar in Madhya Pradesh and Subhanshree in Arunachal Pradesh.
The Teesta project is of national importance but the investments made by investors and contractors are stranded. Soon, some finality will be reached on this important project. Talks are also underway with the Madhya Pradesh and Arunachal Pradesh Governments for the revival of the projects but henceforth, new projects will be announced only when necessary approvals and land clearance are set in place, Goyal said.
On the issues of new investments in the power sector, the minister said there is a need to refine the tax regime and regulatory framework in the country.
He pointed that huge sums of money can be accessed from the international market but the country does not have the capacity to absorb it. Investments worth $250 billion in power generation as well as in the coal sector can enter the country, he said.
Coal block auctionsOn the issue of the recent coal block auctions, he said the process of bids should not be stalled by industry players otherwise the investments in the sector will suffer. If the companies have any complaints, they could approach the respective tribunals for sorting out the issues. Efforts are also on ensure that the bids received for the blocks are shared with people of the country in real time.