Uttarakhand to follow Himachal Pradesh model for hydropower project

To set up newhydropower projectsand start the pending ones, theUttarakhand governmenthas decided to follow in the footsteps of neighbouring Himachal Pradesh (HP) as the state cabinet has approved a new policy on lines of HP’s model.

The new investors will now have to give Rs 1 lakh as development tax, which earlier was Rs 25 lakh. The new policy has also cleared the deck to hand over the pending projects to other companies. Under the project, the river bed material dug up for the project can be used to make the plant and permission has been provided to set up stone crushers.

According to the previous policy, the build, operate and transfer duration was for 40 years, out of which five years were for construction and 35 years for the operation. Now, according to the proposed amendment, the allocation would be for 40 years after the scheduled commercial operation date (SCOD). Owing to the objections raised by the court, several hydropower projects are yet to be started in Uttarakhand.

According to the new policy,UttarakhandPower Corporation Limited will purchase the electricity produced by the project up to 25MW on a tariff fixed by the State Electricity Regulatory Commission.

The policy defines the provisions for the state to come up with parking on government land, for people developing parking slots on private/government land and for the government using private land to develop parking.