After opposition to new hydel projects, U'khand changes track

After finding it difficult to make headway in the power sector, a worried Uttarakhand government is now relying on the proverbial phrase — old is gold.

In its bid to increase power generation, the government has now asked the Uttarakhand Jal Vidyut Nigam Limited (UJVNL) to modernise and renovate its old hydel projects on priority basis, the plan for which has not gathered much momentum during the past one year.

UJVNL, a state government enterprise, would receive a loan of 100 million euros from KFW, a German financial institution, for modernising and renovating six hydel projects in Garhwal region. The six projects are 240 Mw Chibro, 120 Mw Khodri, 51 Mw Dhalipur, 33.75 Mw Dhakrani, 30 Mw Kulhal and 90 Mw Tiloth.

An additional grant of 3.3 million euros from KFW would be for preparing the Detailed Project Reports (DPR) of these projects. The loan would be at 1.95 per cent interest.

Lameyar International, a German company, is preparing the DPR in this regard. “Our DPR will be ready soon and after that we can go for open bidding process,” said Yogendra Prasad, Chairman of the UJVNL.

Prasad also said the UJVNL is now hoping to start the open bidding process in June-July.

Similarly, Rural Electrification Corporation Limited (REC), a PSU, has agreed to provide a loan of Rs 50 crore for modernising Mohamadpur (9.3 Mw) and Pathri (20.4 Mw) hydel projects.

The government, in a major policy decision, had decided to renovate all those hydel projects, which have crossed the 35 years of age under the Public Private Partnership (PPP) mode.

Under the cabinet decision, nearly 24 hydel projects were listed in this category, which were to be given on 30 years’ lease. The total capacity of all these projects is 500 Mw.

However, the plan was opposed by Congress and union leaders of the UJVNL, who are against giving these projects on PPP mode and instead want the state-owned company to take up the renovation work.

The government is also facing opposition on the allotment of new hydel projects under self-identified route.