Fate Of Hp Hydel Project To Be Decided Soon

The fate of the 300 mw Chamera Stage II project in Himachal Pradesh, which has been hanging fire for the past ten years, will be decided shortly when the project is taken up for consideration by the Public Investment Board (PIB). The power ministry has already circulated the PIB note in this regard to the concerned ministries.

The Planning Commission and the finance ministry have been vocal in their opposition to the project, citing its high cost. The project, to be executed in the Central Sector by the National Hydroelectric Power Corporation (NHPC), is estimated to cost Rs 2,350 crore.

 

The power ministry, however, is keen on taking up the project for execution in the Ninth Plan, since it is ready with all the requisite clearances and can be completed in the Ninth Plan itself.

The ministry is of the opinion that the Northern region is going to face acute peaking power shortages from the beginning of the Tenth Plan onwards since there is no other hydro project ready for financial closure, either in the private or the public sector, in the entire northern India, making it imperative to take up the project.

Moreover, the projects execution is likely to be fairly easy as most of the infrastructure facilities are already available.

The power ministry has ruled out the possibility of going in for re-tendering, which will involve a further delay of three-to-four years.

The ministry also feels that it will be against the national interests to abandon the project since hydro power has been accorded national priority in power planning.

The project will be operating at a 49 per cent load factor in a dependable year. The project is designed to operate as a base-load station during the monsoon months and permit thermal power units of equal capacity to take a shut-down for annual maintenance.

During the non-monsoon period, the project will provide the much-needed peaking support.

The Chamera Stage II project was transferred to the Central sector for execution by the government of Himachal Pradesh in 1987.

The project, initially, was to be implemented in collaboration with Canada, which was at the time associated with the execution of 540 mw Chamera Stage I.

In 1992, however, the arrangements fell through as the Canadian financing agency, EDC, backed out from providing the loan for the project.

The Indian government, subsequently, decided to opt for 100 per cent financing arrangements. In response to this, only two proposals were received in 1993 and the Indo-Canadian Hydro Consortium was shortlisted.

Close on the heels of this came opposition from the Planning Commission and the finance ministry, who were of the opinion that the sanctioning of a project at this high cost would only serve to provide private entrepreneurs with an excuse to jack up their project costs.

The Himachal government on its part has been pressing the Central government for early implementation of the project. The Chief Minister has asked the Centre to either execute the project immediately, or return it to the state so that it could be offered to private entrepreneurs.

The project is located near Chamba town and is based on the Ravi river which has an identified hydel potential of 2,000 mw. NHPC has already set up two projects on this river. These are 198 mw Baira Siul and 540 mw Chamera Stage I.

Another major project on the river, the 600 mw Thein Dam, has also been taken up for execution by the Punjab government.