Policy for stalled private hydro projects likely

In a bid to meet its renewable energy commitments, the government is considering a policy for takeover of stalled private hydro projects by PSUs like NTPC, NHPC, & SJVN. Estimates suggest that 90% of the 60 GW projects awarded to various private and central PSUs (CPSUs) are yet to be developed. Most of these are situated in the North Eastern region of India.


Image credit: Pexels

The central government is mulling a policy to facilitate CPSUs to take over hydro projects, at initial stages of development, most of which have not yet been referred to insolvency courts by lenders. According to sources, there are at least 10 GW projects, which fit this criteria. A committee under the Union Power Ministry will evaluate the takeover proposals and reports submitted by the concerned companies. Meanwhile, State governments that have awarded these projects are deliberating terminating the contracts with private companies, which may lead to long litigation.

India has recently agreed to bring its non-fossil energy capacity to 500 GW by 2030 and reduce its economy’s carbon intensity to 45%. Commenting on this, Power Minister, R K Singh, had last month said the country will exceed its target of 500 GW renewable energy capacity by 2030. He added that India needs hydro power as a balancing source for grid stability as wind and solar power supply is intermittent.

Source: ET


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