By Noor Mohd, IANS
New Delhi : After the successful launch of its coal-based ultra mega power project scheme, the Indian government is looking to launch a similar programme to implement hydroelectric projects.
Under the coal-fired ultra mega power project scheme, the power ministry has successfully given contracts to three 4,000-MW capacity projects for implementation at places like Sasan in Madhya Pradesh, Mundra in Gujarat and Krishnapatnam in Andhra Pradesh. It is currently in the process of allocating a similar-sized power project in Tilaiya in Jharkhand.
Following this model, the power ministry plans to arrange all regulatory and statutory clearances and land before bidding out a hydroelectric project for implementation.
Harry Dhaul, director-general of Independent Power Producers Association of India (IPPAI), says this is a welcome move by the government.
“This is a welcome step and we should encourage it,” said Dhaul. “Hydro is a renewable and clean source of energy and so good for the country.” Implementing hydroelectric projects is a more complex challenge because they tend to throw up geological surprises, which is the reason why such projects are usually less attractive to private investors.
Dhaul, however, did not subscribe to the view that the envisaged hydro ultra mega power project scheme might not see the same level of private investor interest as the thermal power projects did.
“If the risks are high, so are the rewards,” he said.
Like Harry Dhaul, Kuljit Singh of the global consultancy firm Ernst and Young (E&Y) also welcomed the government’s initiative on hydropower projects and said that it should be successful.
“The ultra hydro mega power project scheme should be successful,” Singh said.
He said that private developers were avoiding large-sized hydroelectric projects mainly because of the difficulty of securing environment clearances and acquiring land.
“Since it is the government that will be responsible for arranging these critical inputs for these projects, private developers should have no problem in taking up these projects,” the E&Y consultant said.
He said although there were hydrological risks involved in implementation of hydroelectric projects, the risk perception could vary from developer to developer.
J.N. Gaurav, director in-charge, technical, Jaiprakash Hydro-Power Ltd, a key private player in hydroelectricity generation, welcomed the power ministry’s policy initiative.
“Although there is scope for further improvement in what the power ministry has envisaged, we welcome it,” Gaurav said.
“One thing that the government can do is to incorporate provisions to ensure project implementation is taken up by selected developers on a fast-track basis after critical inputs like land and environment and forest clearances are in place,” he suggested.
India has the potential to generate 148,701 MW of electricity from its hydro resources, but it has harnessed only 21 percent so far.