Disparity in hydro power policy affecting speedy implementation of projects

Disparity in hydro power policy affecting speedy implementation of projects
“The state governments should adopt a system to balance in allotting projects between CPSUs and IPPs for faster development of hydro projects,”  said  P C Pankaj, CMD, NEEPCO
NEEPCO, the pioneer in the power sector in the country, provides almost 60 per cent of the energy requirement of the North-East India. The organisation, which is constantly expanding its domain of expertise to cope up with the changing environment, plays an important role as a contributor for capacity addition programs. In an interview with EPR, Mr Pankaj discusses about the overall power industry as well as the growth plans for the hydro and thermal sectors. Edited experts:
What is your opinion on the power sector in the country?The overall prospect of the power sector is inspiring. There is a strong correlation between GDP growth and power demand. Increase in GDP results means increase in the demand for power. In order to meet the ever-increasing demand of power in the country, Indian power sector is relentlessly working for capacity addition programs. In the concerted efforts for capacity addition in the country, NEEPCO plays an important role as a contributor.
What are the key roadblocks for Indian power sector, and what are the ways to resolve them?Most of the hydro projects in the states have been allotted to various agencies which don’t have enough experience of working in the Himalayan region. It seems financial capabilities of these agencies are also not very strong. Perhaps these are the main reasons for which we have not seen much development in the hydro power sector in the recent years, especially in the North-East India, which harbours more than 50 per cent potential of the country. Since water is a state subject, and allotment of hydro projects are decided by the state government, they should formulate a transparent system for allotting hydro projects. They should adopt a system to balance in allotting projects between CPSUs and IPPs for faster development of hydro projects.
There are considerable delays in environment and forest clearances which is also a hindrance toward development of power sector. There should be proper coordination in the concerned ministries and departments for fast-track clearances of hydro projects. Shortages of fuel like coal and gas are also hindering the Indian power sector. The mining of coal should be allocated to the efficient companies through transparent system.
Lack of proper road transportation system to access the project site or to transport over dimensional consignments is also a big bottleneck in the North-East India. A concerted effort for timely infrastructure development is to be initiated before allotting the hydro projects for development. Law and order situations in some of the states are also not very conducive for which projects are getting delayed. In recent times, it is seen that most of the projects are suffering because of contractual ambiguities. Ministry of Power, Government of India has taken initiative to formulate standing bidding document (SBD) to sort out such issues.

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