Shimla, Sep 9 (Inditop.com) Himachal Pradesh, which has a potential to generate 20,416 MW of hydroelectric power, decided Wednesday to invite bids to develop 54 small hydro projects, according to an official statement.
“The state cabinet Wednesday allowed Himurja (the state energy development agency) to invite bids to execute 54 identified small hydroelectric projects ranging from 0.40 MW to 5 MW,” said the statement.
As many as 30 projects up to 2 MW will be allotted only to residents of Himachal Pradesh.
The cabinet also allotted the Suil project (13 MW) to MBD Limited and Saach Pass (149 MW) to L&T Power Development Limited.
It has decided to re-invite bids for the Khoksar project (90 MW) in Lahaul and Spiti district.
Under the state’s amended power policy, it will get free power from all the allotted projects.
The fixed quota for projects up to 5 MW is 6 percent free power for the first 12 years, 15 percent for up to 30 years and 24 percent for up to 40 years. After 40 years, the project will be handed over to the government.
To encourage small entrepreneurs, the government is not charging any upfront premium for small projects. However, for the projects above 5 MW, the fixed upfront premium is Rs.2 million per MW, which is in addition to free power bidding.
The average cost of a project is Rs.70 million per MW.
Himachal Pradesh has abundant water resources, with five major rivers flowing down the slopes of the Himalayas. Its power generation potential is 20,416 MW, about 25 percent of India’s total potential.
Of this, around 6,500 MW has been developed.
