Centre asks one agency to take hydel projects along the river

New Delhi: The Centre has asked States with hydel potential to follow a policy of bundling hydroelectric projects along a single river to one agency, so that development of the resources is done optimally and comprehensively.

Currently, hydro power development is being done in a piece-meal manner, with most States awarding projects on any river to a bevy of developers, based on the quantum of free power and other benefits quoted by them.

“States need to allot projects in a particular river basin or sub-basin to only one agency so that the utility develops the infrastructure there appropriately in full measure and in a comprehensive manner. We have initiated talks (with States) in this regard,” a senior Power Ministry official said.

Over 16,000 MW of hydro power projects are expected to come up during the current Five-year Plan period and another 30,000 MW of hydro power development targeted for awards during the Twelfth Plan period.

According to the Centre, even the small hydro potential should be given to the developer selected for harnessing resources along a particular river. “While a utility is working alongside a river, it is in the best interest to let it develop the entire potential in that limited area comprehensively so that once that particular sub-basin has been covered, we can move on the next rather than scattering ourselves all over the place,” the official said.

States are, however, likely to offer resistance to any proposal that impinges upon their right to harness hydel resources, according to experts. Technically, water and hydro power come under the domain of State Governments and a number of States with hydro potential, including Himachal Pradesh, Uttarakhand and most North-Eastern States, are leveraging their hydropower resources to raise substantive revenues through award of projects.

Of the country’s 1,35,000 MW of installed power generation capacity, only 32,000 MW is based on hydropower at present. The country is seeking to add 78,577 MW of generating capacity during the current Plan period, of which 16,553 MW is expected to come in from hydro projects.