Haryana Govt Invites Bids For Small Hydel Projects

The Haryana government, in a bid to tackle the power crisis in the state, has invited proposals from both domestic and international promoters for small hydel projects in the state.

The Haryana State Energy Development Agency has also announced incentives for the projects which will be based on non conventional energy sources, according to Attar Singh Saini, minister of state for non conventional energy sources.

The potential sites for such projects have been identified in Yamunagar, Jind, Karnal, Sirsa, Kaithal and Panipat.

Saini said both the state and the Union government will offer attractive incentives for the setting up of the hydel projects.

 

The state electricity board will purchase power at the rate of Rs 2.25 per unit (base year 1994-95) with annual escalation at a rate of five per cent.

The wheeling charge will be two per cent in cases where power is wheeled and used by the power producer or a third party.

Saini said banking will be allowed for a year and the proposed projects will be exempted from electricity duty.

Plant and machinery purchased for these projects will be exempted from sales tax.

Besides, there will be no royalty charges on water used for power generation through mini, micro or small hydel projects, the minister added.

According to Saini, the Union ministry of non conventional energy sources will provide capitalised interest subsidy up to Rs 38.3 lakh per mw for small hydel projects.

The government will also provide cent per cent cost, subject to a maximum of Rs 1.5 lakh as assistance for survey and investigation.

The Indian Renewable Energy Development Agency will provide loan for project financing and equipment up to 100 kw capacity.