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New hydro power policy in August, says Kumaramangalam

Union Power Minister PR Kumaramangalam said the Union government would come out with a new hydro power policy next month.

Talking to newsmen in Shimla, he said a draft of the new policy would be made available to the agencies concerned, including financing institutions and state electricity boards, to enlist their views before the Cabinet approved it.

Earlier, inaugurating a two-day national seminar on ''Hydro Power Strategies for Speedy Development'', he said the ratio of hydro power had come down to just 25 per cent and the government hoped to increase it to 31 per cent by the end of the Tenth Plan.

''A Union Power Trading Corporation is being set up with a view to help states in the sale of power,'' he said.

Kumaramangalam said the government had decided that projects of upto 25 MW capacity would be treated as small and micro projects which would help in their speedy execution in hilly areas.

He said the country had 84,000 MW hydel power potential but its exploitation could not receive the desired attention earlier.

Huge investments and long gestation periods cause slippage in hydro power projects and need to be addressed, he said. ''Transparency and evaluation are essential and the government is tightening control over various projects,'' he added.

The minister stressed the need for setting up of run-of-the-river projects as they caused minimum losses. The hydel projects with storages had a social fallout regarding rehabilitation which was causing a serious setback in the coming up of the projects in the hills, he added.

Referring to imposition of generation tax by states, Kumaramangalam said the matter had to be resolved after chief ministers of all states met to sort out the issue.

In reply to a question, the minister said the sanctions imposed against India would have no immediate effect in the power sector. ''Multinational companies are coming forward for investment despite sanctions,'' he added.

Regarding Himachal Pradesh's 7.19 per cent claim in the project undertaken by the Bakra Beas Management Board under the Punjab Re-organisation Act, he said a meeting of the concerned states would be called in the first week of September to sort out the issue.

Pointing out that the previous Himachal Pradesh government had moved the Supreme Court in this regard, Kumaramangalam said he appreciated the stand taken by Chief Minister Prem Kumar Dhumal seeking an outside-the-court settlement.

Kumaramangalam promised all support to the Himachal Pradesh government for a study into viability of various projects. ''The Power Grid Corporation had assured making arrangements for transmission of power from the state,'' he added.

Kumaramangalam said the hydel projects with dams had social fallouts regarding rehabilitation which was causing a serious setback in the coming up of such projects.

Dhumal said liberal grants should be given to the state governments which were engaged in preparing projects by undertaking detailed survey to explore the possibility of opening hydro electric schemes.

The documentation should be simplified and standard documents for award of bids should be prepared and circulated to hydel power-producing states. Procedures for obtaining clearances from the Central Electricity Authority and environment ministry need be simplified and a time-frame be worked out for its issuance, he added.

He said there was a need to extend the fixed tariff regime along with concessions which were applicable to projects up to three MW capacity to projects upto 20 MW capacity. ''The central public sector units must be encouraged to actively associate either with joint ventures or work on their own for undertaking some of the projects in the hydro power-rich states,'' he observed.

UNI