Greater role for private sector okayed

NEW DELHI, Aug 26 (UNI) — The government today approved giving a greater role for private participation in hydro-power generation in an attempt to solve the blackouts faced by the power sector.

The object of the new hydro power development policy enunciated today is to exploit India’s vast hydroelectric potential at a faster pace with emphasis on small and mini hydel projects.

Under the policy the country will augment electric power by 9,000 mw with 550 mw coming from private investors and the rest from the public sector, top-level officials said.

There would now be a differential pricing for peaking power to facilitate greater investment in hydel projects which have the capability to supply peaking power in a cost-effective manner, they said.

Besides, a power development fund would be created by levying a cess on electricity consumed and using two-thirds of the proceeds to promote power development by the state governments.

The remaining one third will be utilised by the central government for promoting hydel projects in the central sector and for investment in transmission lines for evacuation of power from inter-state mega hydel projects.

The details of how much should be the quantum of cess, who should administer it and how it should be collected from the consumers are all yet to be worked out.

The hydel policy is based on the recommendations of the committee on hydro power, which submitted its report in March, 1997.