Bengal Throws Open Hydel Generation To Pvt Sector

West Bengal's hydro-electric power sector is being thrown open to the private sector and joint ventures. Power minister Mrinal Banerjee has called all the chambers of commerce on May 18 to discuss the issue.

Till now, only mini and micro hydel power projects were offered to the private sector. However, considering the urgency to restore better balance to the existing 97:3 thermal-hydel ratio in the state's power generating sector, the state government has taken the initiative to involve the private sector to develop hydel projects of any size.

G D Gautama, chairman, West Bengal State Electricity Board (WBSEB) who spoke at the Merchants' Chamber of Commerce here on Friday, said this did not affect the government's decision to set up a new corporation for hydel power. "The new corporation can partner private entrepreneurs in joint ventures to take up hydel power projects", he said.

The new policy initiative, sources said, was a belated attempt to fall in line with the rest of the country in implementing the Government of India's hydel power policy formulated in 1998. The policy allows up to Rs 250 crore private investment through the MoU route in the hydel sector without clearance from the Central Electricity Authority (CEA). However, CEA sanction is a must for larger projects which must be through competitive bidding.

MCC president Ravi Todi had said earlier that the government's plans to allow the private sector set up hydel power plants only for captive use may not be a viable option.

"For a real thrust in the growth of hydro-power, both industries and private developers should be invited and allowed to sell the power to the proposed Hydel Power Corporation or the other states through it", said Todi. He also suggested that "developers of large projects (above 50 mw) should even be allowed to consume the power in their own industries in other states or to the industries in other states where third party sale is allowed".

Todi also demanded a provision for buy-back of such power by the WBHPC in the even of work suspension in an industry.

Gautama said most hydro power potential in the state was in Darjeeling district. The district, sources said, has a potential of over 500 mw of hydel power.