MP clears new mini-hydel power policy

To market its 30 mini hydro power sites, the Madhya Pradesh government on Wednesday cleared an amended mini hydel power policy 2011 with certain but tougher norms. The state government, according to a senior government official, is eyeing to attract Rs 4,500 crore for 30 mini hydel power projects.

All potential investors will be mandated to supply free power to the state government for a period of two years with certain conditions. Accordingly, investors who will set up five Mw power plants, will have to supply five per cent of the installed capacity. Those installing more than five Mw but less than 10 Mw will have to supply eight per cent and those who will set up 10 Mw-25 Mw power plant, will have to supply 10 per cent of the power free of cost to the state government for two years.

In the event of delay in commissioning of the project, the developer except in the case of force majeure, will be required to compensate the loss of free power (revenue) to state non-renewal energy for the delayed period as per the projected power generation in the DPR (detailed power report) during this period.

The loss should be compensated in form of revenue equivalent to the quantity of free power after the start of commercial operation over and above the committed free power.

The state government has also eased norms for financial closure and has raised its period from12 months to 24 months. “Government will call tenders four times a year from qualified bidders for self identified projects. If more than one bidder participate for one site, the highest bidder will be given priority,” the official said.

The state government had launched its mini hydel power policy in 2006 for the first time.