Setback to Uttarakhand hydel project upgrade

The Uttarakhand government's move to modernise and renovate ageing hydel projects under public-private partnership (PPP) mode appears to have backfired.

Faced with stiff opposition, Chief Minister B C Khanduri has now asserted that the government would weigh all options before adopting the PPP path.

This assertion is in sharp contrast to the earlier statement of Khanduri, who had gone on record saying the government took the PPP decision on hydel projects in the best interests of the hill state.

“If we need more power, we must go for privatisation,” said Khanduri last month soon after the cabinet decision.

But in the latest statement, the tone was totally different. “We will make an assessment of each hydel project before going in for PPP mode,” said an official statement quoting Khanduri last evening.

Khanduri changed positions in the wake of strong opposition in different quarters over the handing over the aging hydel projects under PPP mode to private companies.

Led by the unions of the Uttarakhand Jal Vidyut Nigam Ltd (UJVNL), which manages all these projects, and some Congress leaders, there has been sharp criticism of the government in this regard.

Khanduri’s comments came a month after the government, in a major policy decision, decided to invite private players to renovate all those hydel projects, which have crossed the 35 years of age.

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.

Official sources, however, said the PPP decision was the best option since the state needs power.

At present, the state is facing acute power crisis after two power projects — 90 Mw Maneri Bhali-I and 304 Mw Maneri Bhali-II — stopped producing electricity due to silt problems.

In June, the government suspended the construction of two of its major hydel projects — 480 Mw Pala Maneri and 400 Mw Bharion Ghati — under pressure from environmentalist G D Agrawal.