Power scene: 2019-20

Kuldeep Chauhan

Tribune News Service

Shimla, December 22

The power sector saw more downs than ups in 2019. First, the revenue graph witnessed a downward trend (27 per cent). Second, the hydropower sector put a full stop to private investment.

The revenue was Rs 826 crore (till November) this year, Rs 310 crore less than what the state had earned in 2018-19 (Rs 1,136 crore).

The exit of private sector investment came as a jolt, forcing the state government to sign 11 MoUs worth Rs 34,112 crore with the Central Public Undertakings during the Dharamsala investors’ meet in November.

These 33 57-MW power projects are located on the Chenab and Sutlej basins and legal MoUs for these are yet be signed.

The state government has allotted these projects to the Central Public Undertakings on a “build-own-operate-transfer basis for a period of 70 years”.

The undertakings will provide 100 units of free electricity to all project-affected families for 10 years under the state hydropower policy. Most projects were surrendered by private power producers, while others had been hanging fire for years.

The state government has offered sops to the IPPs to rejig the power sector by cutting down the upfront premium, deferring 12 free power royalty and extending the lease period to 70 years, but the latter showed little interest in these projects.

The IPPs stated that the projects were located in remote areas, lacking infrastructure, transmission lines and road connectivity. Then there was stir threat by locals. “The projects have long gestation period, while the cost of generation of energy has increased to Rs 10 crore per megawatt, making them unviable”, they claimed.

“The Directorate of Energy (DoE) had estimated a revenue worth Rs 890 crore this year. But the state government could generate only Rs 826 crore till November,” said Sudesh Mokhta, director in-charge, DoE.

Experts attributed the revenue loss to economic slump, few takers for power during the peak season and shutdown of power projects due to silting in the rainy season.

“The state added three small projects of 58.60-MW capacity to its kitty,” said Chief Engineer, DoE, PKS Rohela. But these are yet to be officially inaugurated.

Besides, the government has also signed MoUs with private players in the solar power sector to executive six projects. “Investors find investment in solar power hassle-free and more incentivised as compared to the hydropower sector,” said power producers.

Projects

Project CPU location

400 MW Seli NTPC Ltd. Lahaul-Spiti

120 MW Miyar NTPC Ltd. Lahaul-Spiti

66 MW Dhaulasidh SJVN Ltd. Hamirpur

210 MW Luhri Stage-I SJVN Ltd. Shimla

382 MW Sunni Dam SJVN Ltd. Shimla

172 MW Luhri Stage-II SJVN Ltd. Shimla

780 MW Jangi Thopan Powari SJVN Ltd. Kinnaur

210 MW Purthi SJVN Ltd. 210 MW Lahaul-Spiti

138 MW Bardang SJVN Ltd. Lahaul-Spiti

430MW Reoli Dugli SJVN Ltd. Lahaul-Spiti

449 MW Dugar NHPC Ltd. Chamba