With the view of boost hydropower development in the country power ministry is preparing a new framework which would include lowering the cost and removal of long-drawn clearances. “We are preparing a framework for hydropower development in the country, very soon we will take it up to the highest level in the government, so the focus is going to be back on hydro,” Additional Power Secretary B P Pandey said at a conference on hydropower.
He added that reducing the cost of hydroelectric power is one of the major challenges in the hydropower sector and thus financial restructuring is required with innovative financing instruments.
“How do we bring down costs or tariff of hydro projects, can we overcome and remove some of the long-drawn clearance processes taking into account environmental safety as well and basin studies, can we also devise some innovative financing models in our instruments which may help to restore the investor confidence which as of now has gone down and people are really not investing apart from PSUs,” Pandey said.
Speaking at the conference Chief Minister of Arunachal Pradesh Kalikho Pul invited private players to install hydropower plants in his state and assured all necessary support. “We will provide all support to private developers for installing and commissioning of hydropower plants with facilities of single-window clearance. All requirements of local coordination will be fast tracked and we will ensure that there are no barriers to investors. State is examining various options available for funding the equity participation of state including the option to exit from the same,” he said.