Power project allotment norms to be relaxed

Kuldeep Chauhan

Tribune News Service

Shimla, June 3

The state government has proposed changes in its hydroelectric project allotment policy to woo firms for 37 projects of 1135 MW capacity.

It has proposed to reduce the upfront premium from Rs 35 lakh per mw to Rs 5 lakh per mw and the forest land rate has been fixed at Rs 1 per sq m. The deadline for inviting fresh bids for the projects has been extended to June 30. The proposal will be put up before the Cabinet for approval soon.

The Directorate of Energy proposed these changes after studying the allotment policy of Uttarakhand. On May 6, the Cabinet directed the multi-purpose power projects department to study the policy of Uttarakhand and table a fresh proposal.

Till May 30 (the fourth deadline), the government had got only two bids. It then decided to relax the norms.

The Directorate of Energy has sought to relax the upfront premium, bank guarantee and implementation agreement (IA).

As per the proposed policy, the independent power producers will be exempted from fine.

“A fine of Rs 10,000 per mw will not be charged if the producers will not be responsible for the delay,” sources said.

The bank guarantee has been limited to Rs10 lakh per project. Earlier, it was Rs50 lakh per project. The officials said the norms would be relaxed only after the multi-purpose power projects department approved the proposal.

It is learnt that the power producers are not keen on being part of the projects as these are located in remote locations near the Satluj, Beas, Ravi, Chenab and Yamuna.