Separate policy sought for small hydropower projects

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Tribune News Service

Shimla, February 24

Small hydropower developers are pushing for a separate policy for projects up to 25 MW capacity. They have taken up the matter with the Union Ministry of Power and the Union Ministry of New and Renewable Energy. “The scale, dimensions and issues of small hydropower projects are totally different from large hydropower projects. So, it is important to have a separate policy governing and regulating small hydropower projects,” said Arun Kumar, vice-president of the Federation of Indian Small Hydropower (FISH) developers.

The federation, a representative body of small hydropower developers from across the country, was formed last year to voice their concerns at the highest level. Big hydropower players already have an association called the Forum of Hydropower Producers. “The objective of the forum is to make hydropower development sustainable and ensure the economic growth of the state in the long run,” said forum’s secretary-general CM Walia.

The federation has seven member associations — three in Shimla and one each in Bengaluru, Pune, Dehradun and Srinagar. Besides pushing for the formulation of a separate policy for small hydropower projects, the federation’s objectives are to promote commercial harnessing of small hydropower projects (SHP) and other renewable energy sources, develop and promote SHPs, develop a data bank, raise funds, create, upgrade and share field laboratories, and organise seminars and workshops etc.

“We are demanding a separate policy to address a host of issues stalling the growth of the SHPs and create a level-paying filed vis-à-vis other renewable sources of energy such as wind and solar,” said Rajesh Sharma, executive member of the federation.

He claimed that the SHPs had become financially unviable because of high cost and taxes and the federation was demanding fixing of royalty at 12 per cent for 40 years. “While the GST on solar and wind projects is 5 per cent, it’s 18 per cent in case of hydropower projects. There’s no inter-state transmission charges for solar and wind projects, but the charges are applicable in case of hydropower projects,” said Sharma.

He added that applications for forest clearance for the SHPs go to the Central Government and take a long time. “It increases the gestation period, making the projects even more financially unviable”.