Guj Govt announces policy to encourage hydel power plants

Gujarat government today announced a policy to encourage setting up of small hydel power generation projects on dams, canals and rivers in the state.
The 'Gujarat Small Hydel Policy-2016' was today announced in the Assembly by state Energy Minister Saurabh Patel.
As per the new policy, projects of generating power using force of water will get various benefits for 35 years.
"This policy covers hydel power stations having a generation capacity of less than 25 MW. These power plants can sell their electricity as per the tariff decided by the Gujarat Electricity Regulatory Commission (GERC) or through competitive bidding process," Patel said while presenting the policy.

The policy provides for various benefits to such power stations, including exemption from paying any electricity duty on the electricity generated from such plants.
Further, such captive power projects are also exempted from wheeling charge. In addition, such plants will be eligible to get 50 per cent concession on distribution loss, stated the policy document.