Private power producers give up projects in Chenab basin

Kuldeep Chauhan

Tribune News Service

Shimla, August 11

Satluj Jal Vidyut Nigam (SJVN) Ltd has sought allotment of all “viable” power projects worth 3,000 MW capacity to the company located on the Chenab basin in Lahaul-Spiti and Pangi in the state. Besides this, NTPC has also evinced its interest in taking up a project or two on this basin, said officials.

The SJVN and NTPC have stepped in seeking allotment of these projects after almost all private power producers surrendered the projects on the Chenab basin, pleading that these projects are “unviable”.

The government had already allotted the 445 MW Duger project to the National Hydroelectric Power Corporation (NHPC) a few months ago, sources in the Directorate of Energy said.

The exit of private sector from the power scene of state is being viewed as a major setback for the state government’s efforts to rope in private investors to invest in the power and tourism sector.

The exit of IPPs has come at a time when Chief Minister Jai Ram Thakur has planned a big investors’ meet at Dharamsala in November.

The Central Government has already declared the hydropower as a “renewable source” of energy that will incentivise the investors. Also, the government reduced the upfront premium, but the IPPs chose to surrender and did not evince any interest for the fresh bids last May, said the sources.

Dr Nand Lal Sharma, CMD, SJVN, said they were holding talks with the state government for the allotment of all viable power projects to the SJVN. “Himachal has 27 per cent share in SJVN and we have expertise and are willing to take up all viable projects on the Chenab basin as we have done on the Satluj basin,” he added.

Almost all independent power producers (IPPs) — Reliance, Tata, ABG Shipyard and Moserbaer — who were allotted these projects over the years have surrendered four hydropower projects – Duger, Purthi, Seli, Bardang — in the Chenab basin.

The Commissioner-cum-Director, Energy ,Manasi Sahay Thakur, said the government had to take a call on allotment of projects in Chenab basin to the SJVN and NTPC which were free for allotment. Some projects were pending for final decision with the arbitration panel, she added.

Reliance was the first to surrender the 300 MW Purthi, followed by Moserbaer’s 400 MW Seli power project near Udaipur town of Lahaul, ABG energy gave up the 126 MW Bardang project. DCM Sriram has also decided to surrender the 120 MW Chatru project, the world’s highest project in Lahaul, the sources said.

Citing the reasons, these private companies said these projects were located in remote locations and have no transmission line to evacuate power.