Govt plans push for hydro power
After setting the power distribution segment on a reform road, the Union government is planning to rescue the languishing hydro power sector, with a three-pronged approach.
The first move would be to increase the ambit of small hydro projects to 100 Mw from current 25 Mw. This would help achieve the renewable energy (RE) targets of states and also bring a large number of projects under the net of government subsidy and other tax benefits.
The installed capacity of hydro power projects has remained 40,000 Mw for the past three years, while that of the renewable energy sector has increased about 20 per cent in the same period. In the past decade, RE (solar and wind power) has grown by 89 per cent, while hydro has staggered at 28 per cent.
During the preceding United Progressive Alliance government, hydro power projects were given a boost, with large allocations to the private sector.
Arunachal Pradesh had awarded about 60,000 Mw of hydro projects to 130 companies. But, legal and regulatory issues playing spoilsport, none of the projects were commissioned.
Since coming to power, the National Democratic Alliance has given a renewed push to RE, especially solar power. Now, hydro projects will also get a push.
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