Power producers seek prompt clearances Kalyan Barooah NEW DELHI, Dec 30 – The North-eastern States might be sitting on a huge hydropower potential, but power companies, both government-owned and independent power producers (IPP), citing serious hurdles, have called for immediate steps to simplify land acquisition and environmental and forest clearances processes. The issue assumes significance because it comes at a time when Assam has flagged the issue of construction of mega dams in upper reaches of Brahmaputra River in neighbouring Arunachal Pradesh.
The Assam Government has formally conveyed its concern at the bid to construct run of the river projects in Arunachal Pradesh, where the State government is on a spree to award contracts for hydropower projects.
Last year, Arunachal Pradesh government signed pacts with various private companies for 42 hydroelectric projects, estimated to generate over 27,000 MW of power, while construction of the Upper Siang Hydroelectric Project began in April.
Sources in the Power Ministry said the project developers have now started complaining about lack of basic
infrastructure facilities like road connectivity, communication and power evacuation facilities.
Reports have it that the private and public sector undertakings have joined hands to lobby with the Centre to step in to fulfil their demands.
Sources claimed that the Power Ministry has not received any unanimous demand, made by State-run utilities along with private sector players regarding immediate steps to simplify land acquisitions and securing environmental and forest clearances.
However, during various meetings with the Central Electricity Authority (CEA), PSUs as well as IPPs have conveyed their concerns over problems faced in land acquisition and getting environmental and forest clearances. In case of forest clearance, the Project Developing Authorities have claimed that getting the requisite clearances takes a long time.
Other issues raised by the IPPs related to non-availability of hydrological data and lack of power evacuation system. Some IPPs have also raised the issue of non-availability of power at the construction stage and lack of infrastructure facilities like road-connectivity and communication system.
Interestingly on Wednesday, Jindal Power Limited, a part of Jindal Steel and Power Limited (JSPL) announced it plans to raise Rs 7,200 crore from its initial public offer (IPO) to part finance its power project in Arunachal Pradesh.
The company has signed a deal with the Government of Arunachal Pradesh to develop 4,000 MW of hydropower projects at Etalin and 500 MW at Attunli, through a joint venture with Hydro Power Development Corporation of Arunachal Pradesh Limited.
Under an exclusive policy of the Power Ministry, investment in hydropower in the north-eastern region is promoted by the Central Government to attract investments in the sector.
Under the Mega Power Policy of the Central Government, the qualifying threshold capacity for setting up hydro power plants in the region and for availing the special benefits thereof is 350 MW, whereas for the rest of the country, it is 500 MW.
Under the Hydro Policy 2008 the project developers in the Central and State sector can explore the possibility of foreign assistance to finance their projects.
Currently, Pare Hydro Electric Project (HEP), being executed by North Eastern Electric Power Corporation (NEEPCO) and Renovation and Modernization of Umiam II HEP, being executed by the Meghalaya State Electricity Board (MSEB), are the two externally aided projects under construction with a foreign loan component for Euro 80 million and Japanese yen 1965 million, respectively, sources said.
Meanwhile, sources said that power scenario in Assam has been gradually improving. During April to November, Assam experienced energy shortage of 9.9 per cent and peak shortage of 8.2 per cent, as compared to 12.4 per cent energy shortage and 17.9 per cent peak shortage in the region.
The Power Ministry though declined to share the blame for the shortages citing that electricity is a concurrent subject and supply and distribution as per demand is under the purview of the State Government. The Government of India supplements the efforts of State Governments by commissioning power projects through Central Public Sector, sources said.
Sources said Assam has been allocated 806 – 821 MW power from the Central generating stations. Assam has been allocated 381 MW firm powers from Bongaigaon TPS, which is under implemented by NTPC.
The thermal power plants with an aggregate installed capacity of 968.74 MW have been set up so far in the region. The total installed capacity of region is currently 2284.82 MW, sources said.
