Power PSUs set to take over 29 private hydel projects

The Power Ministry is priming state-run PSUs working in the sector to take over 29 hydel projects that are languishing with private developers

Alt=
Power PSUs set to take over 29 private hydel projects

New Delhi: The Ministry of Power is priming state-run PSUs working in the sector to take over 29 hydel projects that are languishing with private developers, reported TOI on Wednesday. “The projects entailing estimated investments of up to Rs 2.7 lakh crore have a combined capacity of 30,000 MW or 7.5 percent of India’s total installed generation capacity. They were awarded to private firms by six northeast states, but are stuck due to reasons like funding, expertise, land acquisition and clearances,” said RK Singh, Minister for Power.

State govts suggest forming PSU-private sector JVs to take over hydel projects

The initiative underlines the Central government’s renewed thrust on hydel projects to meet the target of 50 percent of power from non-fossil sources by 2030, reported TOI. On this note, Singh said, “We reasoned with state governments that it is not in their interest to allow the projects to languish. We suggested to let PSUs take over the projects and complete them so that states can derive the benefits at the earliest since they have experience and money.”

“The state governments agreed to this proposal but pointed out that the projects could get stuck in litigation with promoters if the awards are cancelled. It was felt that the best alternative would be either a joint venture or a special purpose vehicle route,” Singh added.

PSUs to take over projects only after thorough audit: Singh

The Power Minister also said, “We are open to the idea that the PSU taking over projects will pay genuine costs incurred by the promoter.” Citing an example of an office set up by some developers, Singh said that a thorough audit will be done before taking over any project and now, these things are being studied. He also added that the Power Ministry has several successful hydel entities like NHPC, NEEPCO, THDC and SJVN who can take up these projects.

(PSU Watch– India’s Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)