Amendment to hydro power policy okayed

Tribune News Service

Shimla, July 25

The Cabinet today gave nod for making some major amendments in the State Hydro Power Policy- 2006 to facilitate power producers by relaxing certain conditions and enhancing the time period for obtaining clearances for projects in the Chenab basin from two to three years.

Chief Minister Virbhadra Singh presided over the Cabinet held here today. In a major relief to power producers in Chenab basin, the government has decided to defer the 12 per cent free power from its own share for the initial 12 years and recover it in the next 18 years in uniform percentage rate. Following this relaxation, the payback period for loan will come down to 10 to 12 years instead of the otherwise prolonged 17 to 19 years.

Besides this another step which could prove to be a big relief for power producers in the Chenab basin (Pangi and Lahaul Spiti) is that the time period for obtaining all clearances and start of work has been enhanced from the present two years to three years.

The amendments have been necessitated to reduce the hurdles and delays on account of the mandatory clearances that have to be obtained from the Environment Ministry, Panchayats, National Wild Life Board, approvals from Ministry of External Affairs and diversion of forest and government land.

Another major amendment would be aimed at helping independent power producers with projects above 5 MW in obtaining No Objection Certificates (NOC) and instead of applying to every department, including the concerned panchayat, they can submit the proposals to the Deputy Commissioner. This will help reduce the delays in not just obtaining clearances but also ensure timely execution of the project.

The time period of two months allowed for signing of the Implementation Agreement (IA) after submission of the DPR has been extended to one year. Provision for extension of the stipulated time for signing IA agreement has also been incorporated. In case the delays are not attributable to the power producers, a provision will be made to grant extension without additional fee. The extension fee has been fixed at Rs 10,000 per MW per month.

The Cabinet also gave nod for filling of more than 600 posts, including 300 posts of Junior Office Assistant in the Higher Education Department, 100 posts of ayurvedic doctor, 150 posts of ayurvedic pharmacist in the Ayurveda Department. The Cabinet decided to take over the Shri Vashisth Sanskrit Vidya Peeth Tungesh, in Tehsil Theog in district Shimla.

It also decided to reduce the present rate of Additional Goods Tax (AGT) on iron and steel from Rs 7.50 per quintal to Rs 5 per quintal. The Cabinet also accorded approval to reduce VAT on CNG from existing 13.75 per cent to 5 per cent. It also decided to reduce VAT on Anti Hail Nets to 4 per cent from 13.75 per cent.

The Cabinet also decided to procure citrus fruits (kinnow, malta, galgal and oranges) under market intervention scheme (MIS) 2016-17 from November 21, 2016 to February 15, 2017.