Come with framework to revive hydro sector: Par panel to Govt

Stating that policy measures have failed to revive the hydro sector, a Parliamentary panel today asked the government to come up with a framework to rejuvenate it besides ensuring transparency and level playing field for all stakeholders.
Policy measures like the National Electricity Act, 2003; National Electricity Policy, 2005; Tariff Policy, 2006; and Hydro Policy, 2008 have failed to invigorate the hydro sector and the government has not been able to give any firm timeline for completion of projects, Power Ministry's Standing Committee on Energy said in a report tabled in Parliament.
"... Come up with a framework to rejuvenate the hydro sector and also ensure transparency and level playing field to all stakeholders as this sorry state of affairs in the hydro sector can't be allowed to continue any further," it said.

It added that nine projects of NHPC Ltd, totalling 4,172 MW, have slipped from the 11th plan.
Of this slipped capacity, 3,172 MW is programmed for the 12th Plan and the remaining 1,000 MW has further slipped to the 13th Plan, the panel said.
"The Committee is unhappy with the reply of the Ministry, as it merely mentions the factual position and does not talk about the efforts of the Ministry to overcome the hurdles in this vital sector," it said.

The Ministry has given a timeframe for proposed hydro capacity addition, the panel said, adding that the total identified hydro potential of the country is expected to be harnessed by the end of the 17th Plan i.E. By 2041-42.

"The proposed hydro capacity addition during the 12th Plan period is 10,897 MW. However, up to January 15, 2015, the actual capacity addition is only 1,895.11 MW, which is just about 17 per cent of the proposed capacity addition," it said.
"Although no year-wise targets are fixed for achievement, yet more than three years of the 12th Plan are already over and if the achievements are taken into account on an annual basis, the targets of this plan are sure to meet the fate of the previous plan," it said.
The panel said it would like the government to ensure that the implementation of the projects is timebound and result oriented.

It added that any time over-run not only delays the target achievement but also has a cascading effect on the entire hydro sector.
The Committee further said that the government has come up
with requisite solutions to the roadblocks which have been plaguing the hydro sector since its inception.
"The Ministry... Have suggested some solutions to various difficulties facing the hydro sector. The Committee is of the view that the government must make efforts to implement the solutions, so that the reasons cited for slow development of the hydro sectors, do not lead to the inefficiency and non-performance of the agencies concerned," it said.

The Power Ministry is undertaking review meetings with various ministries, state utilities, PSUs, project developers, among others, to expedite the hydro power development, it added.
The Committee further noted that the Centre itself had lagged far behind its proposed target of generation of hydro energy in successive Five Year Plans.
"During the 11th Plan Period, the target of total capacity addition of 15,627 MW had been reduced to 8,237 MW by mid-term review, out of which 2,922 MW was the share of the central sector, but the central sector was able to add only 1,550 MW during the entire 11th plan period," it said.

"Moreover, the target of the central sector for the entire 12th Plan had been fixed at 6,004 MW, out of a total capacity addition target of 10,897 MW and up to January 15, 2015, the central sector has been able to add only 1,624.11 MW of hydro energy," it said.
The Committee further said that there is wide gap between the target and actual addition of hydro energy, which is a matter of concern that "even the central sector, despite having all the resources, manpower and technical know-how at its disposal, is not able to meet its target."
It said the Centre should discharge its duties with regard to developing available hydro potential in the country and also improve its own performance in this sector "so as to become not just a facilitator but also an active promoter and leading player in the development of hydro potential."

The Committee further said that the government has evolved a new and improved procedure for according concurrence to DPRs of new hydro power project which will fast-track the implementation of such projects and pave the way for expeditious development of hydro energy in the country.
"However, it would have been better, had definite information regarding reduction in time line been intimated following the introduction of the new procedure," it said.
"The Committee believes that despite the involvement of a number of clearances, every effort will be made to ensure the curtailment of gestation period of the hydro projects," it added.

The panel further said that a conducive environment should be created through requisite measures to encourage private participation in the hydro sector of the country.