The government’s proposed hydropower policy, in the works for more than four years, is set to undergo a major revision, sources said. In a major departure from the policy planned earlier, the draft of the new Cabinet note proposes to not give the host state any free power for the first five years. The state where the hydroelectric plant was located so far enjoyed free power equivalent to 12 percent of the plant’s capacity.
“Under the new policy, 10 percent of the plant’s capacity will be given free to the state from the 10th year of its operation,” an official familiar with the development told Moneycontrol.
He said the host state will receive 2 percent free power from the sixth year and this would incrementally rise by 2 percentage points every year to reach 10 percent in the 10th year.
“Not giving free power for the first five years will increase viability of the project, attracting private investment in the process,” the official said. Read More
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