Centre Proposes Incentivising Hydel Projects Facing Time, Cost Overruns

Centre Proposes Incentivising Hydel Projects Facing Time, Cost Overruns

The Centre has proposed bringing all hydropower projects across the central, state and private sectors, irrespective of capacity, under the renewable category. The proposal is in the wake of hydropower projects with a cumulative capacity of over 13,000 MW facing time and cost overruns. The Centre wants to extend interest subsidy and hydro power purchase obligation to accelerate growth of hydropower, according to a power ministry report. The decision comes at a time when private-sector power majors like CESC are trying to exit from hydro projects. According to RP Sanjiv Goenka Group chairman Sanjiv Goenka, hydropower projects face immense delay for obtaining environmental clearances, land acquisition for dam construction, studying the course of the river and other allied factors. CESC was trying to get an exit route from its projects in Arunachal Pradesh with an aggregated capacity of 146 MW, which it acquired from India Bulls in 2012. Yogesh Daruka, partner-hydropower and resources, PwC India, said hydropower was ideally suited to support the variability and intermittency of solar and wind generation, through provision of peaking support and ancillary services. Read More…

 

Credit By: Financial Express

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