March 8, 2019

CM thanks PM for approving measures to promote hydro power sector

CM thanks PM for approving measures to promote hydro power sector

Vijyender Sharma

SHIMLA---Chief Minister Jai Ram Thakur has thanked Prime Minister Narendra Modi for approving measures to promote hydro power sector in the country. He said that the Union government has taken a decision to declare large hydropower projects (HPO) as part of non-solar renewable purchase obligation (RPO), which is a welcome step.

            He said that in addition to other benefits budgetary support for funding cost of enabling infrastructure i.e. roads and bridges on case to case basis as per actual, limits to Rs. 1.5 crore per MW for up to 200 MW projects and Rs. 1 crore per MW for above 200 MW projects will go long way in harnessing untapped potential suffering due to one or the other reason.

            The Chief Minister while appreciating Prime Minister's initiative said that the tariff rationalization measures will provide flexibility to the developers that will increase project life to 40 years and increase debt repayment period to 18 years. He said that this decision will provide measures to promote hydropower sector including providing budgetary support for flood moderation cost and enabling infrastructure cost and tariff rationalization measures to reduce tariff and thus the burden on the consumer.

            Jai Ram Thakur said that major impact of this decision will include employment generation potential as most of the hydro power potential is located in the higher reaches of Himalayas that will result in overall socio-economic development of the region by providing direct employment in the power sector. It will also provide indirect employment/ entrepreneurial opportunities in the field of transportation, boosting tourism activities and other small scale businesses.

            MPP and Power Minister Anil Sharma also welcomed the decision taken by the Union Cabinet on 7th March, 2019, for reviving the ailing Hydro Sector in the Country.

            He said that the Union Cabinet approved that the Large Hydro Projects above 25 MW have also been declared as renewable energy source. Thus the whole of the Hydro has been declared as renewable.

            It is pertinent to mention that the above positive interventions have been a result of the state government's continuous efforts towards effectively taking up of these important issues of the Hydro Sector with the Union Government. Matters related to declaring entire Hydro Energy as renewable energy and having a Hydro Power Obligation were taken up strongly by the Chief Minister, Himachal Pradesh, Jai Ram Thakur and  Power Minister, Himachal Pradesh, Anil Sharma at various meetings and forums.



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