Cabinet approves policy to let players lease, renovate, operate and transfer hydropower plants
Eknath Shinde and Devendra Fadnavis
The state cabinet has decided to renovate and modernise state-owned aging hydropower plants under a new policy that will allow private players and public sector companies entry in some places. The state generation company will continue to handle some old plants, though.
ADVERTISEMENT
The policy came up for approval at Tuesday’s cabinet meeting. Accordingly, private players will be allowed through competitive tendering to lease, renovate, operate and transfer (LROT) hydropower plants. The state government will not invest in LROT projects, but will earn annual revenue of R507 crore through threshold premium, upfront premium, 13 per cent free electricity supply, lease rent and intake maintenance fees.
The overage plants will be categorised in two groups on the basis of the quantum of water used. The first will be purely electricity generation units. The other will be for electricity generation and irrigation. The category one plants will be exclusively handled by the state generation company, which will invest to renovate and modernise them.
The category two will be given to the private and public (there are Centre and other states’ companies in this sector) players through a competitive tendering process. There are some standalone and joint ventures of the Union government and state governments (with massive hydroelectric potential)—National Hydroelectric Power Corporation (NHPC), North Eastern Electric Power Corporation (NEEPCO), THDC India Limited, and Satluj Jal Vidyut Nigam. There are private players like Tata Power, Jaiprakash Associates, Karcham-Wangtoo, etc.
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
