Projects Behind Schedule
State to miss target of generating 122 MW of power
Rakesh Lohumi
Tribune News Service

Shimla, January 19
With a number of hydroelectric projects being executed by independent power producers (IPP’s) falling behind schedule, the state will miss the target of generating 122 MW of power by the end of the current financial year under the mini and micro-hydel sector.

The allotment of projects to IPP’s was started in 1995, but till date only 19 projects with an aggregate generation capacity of 63 MW have come into operation.

As many as 13 more projects with a combined generation capacity of 59.70 MW have been scheduled to be commissioned by March 2009. However, a majority of them will not be completed on schedule.

According to sources in the Himurja, the nodal agency for the implementation of mini and micro-hydel projects, the progress is tardy and only 83 MW of power will be generated by the end of this year.

The projects falling behind schedule include Iku, Awa, Luni and Neugal-II (each of 4.5MW), which were being implemented by Subhash
Projects and Marketing Company.

Some other projects, which are lagging in implementation, are Shyang, Terela and Baner.

Out of total 304 micro-hydel projects with an aggregate capacity of 1,031 MW allotted so far, 19 projects have been completed. While 56 projects are reported to be under construction and their work is yet to be commenced.

Out of these, implementation agreements have been signed only for 105 projects and the rest are still in the process of obtaining various clearances.

The government allows three years for various clearances and two years for construction. As such projects should be commissioned in five years.

However, as many as 131 projects, that were assigned more than six years ago are still under execution. The government had served a notice for the cancellation of allotment to 29 IPP’s who failed to achieve the milestones as per an MoU.

The allotment of some projects where IPP’s have to start work is likely be cancelled. Delay in the commissioning of projects will hurt the state electricity board as it will be denied cheap power.

If all projects had been executed as scheduled, the board would have got over 600 million units of power at a reasonable rate of Rs 2.87 per unit fixed by the state electricity regulatory commission.

It is very attractive proposition in view of the fact that power from the board’s own 126 MW Larji project costs Rs 5.43 per unit.