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Saturday, 20 April 2024

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Indian hydro power policy shift

The Indian government will move towards giving the same exemption from tariff based bidding to private developers. The privilege which was previously only afford to public developers will be offered for a period up to January 2011. The marks an attempt to increase private investment in India's hydro power sector which despite growing rapidly with its publicly funded power plants still cannot keep up with demand. Both large and small scale projects are possible in India and there is no lack for the thirst for electricity in the country. This policy is part of the new hydro policy which India is trying to clear through its cabinet.

According to a power ministry official “Tariff-based competitive bidding can not be undertaken for hydro projects in the country due to high levels of uncertainties arising out of construction risks, adverse geological conditions, delays in land acquisition, natural calamities, among other things. Keeping these things in mind, it has been proposed to exempt all the companies from tariff-based bidding in this regard,”. The Central Electricity Authority must also approve however the developers in order for them to qualify.

Tags: India , Hydro , Electricity , Wind
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