Himachalis can sell shares in power projects after allotment now
The move aims at facilitating them more funds to execute hydro

projects allotted with ease

MUNISH BANYAL

Shimla

The Himachalis would not have to face hardships in raising finances for

execution of the hydroelectric projects allotted to them.

Amending the existing norms, the Himachal Pradesh government has allowed the independent powerproducers (IPP) of the state to sell their ownership share up to 26 per cent to non Himachalis

immediately after the allotment of the project or at any stage.

The move is aimed at facilitating the IPPs better financial management for harnessing the total untapped hydro potential. It will also encourage more and more Himachalis to come forward to set up hydro-electric projects in the state.

The projects up to 2 MW (Mega Watt) are exclusively reserved for the Himachalis but they were facing many difficulties in setting up these projects due to financial constraints.

A hydroelectric project of one MW capacity involves a minimum expenditure of Rs 3 crore.

Earlier, the Himachali allottees were allowed to sell their share to non Himachalis during the construction period only.

Sources said that the bar of selling power projects (even 100 per cent share) to others had been reduced to six months, which was for the period of two years after commissioning of hydroelectric project.

“We have changed the norms to help Himachalis .The developers implementing hydroelectric projects

are also permitted to transfer the ownership by way of selling their equity stakes beyond 51 per cent after allowing the stabilisation period of six months from the date of achieving commercial operation of the project. This provision will be applicable to projects of all sizes,” Principal Secretary Power Deepak Sanan said.

Sources said that the co-operative societies, companies, voluntary societies, trusts, partnership concerns and sole proprietorship concerns comprising bonafide Himachalis

had also been made eligible for allotment of projects above two MW in this category under the amended rules.

According to that, if there is more than one Himachali applicant then preference shall be accorded to applicants from the relevant area and district by way of providing additional/preferential marks. Not more than 3 projects shall be allotted for implementation to an IPP. Under small power hydro development programme in Himachal, the state government has taken many initiatives to encourage private sector participation in small hydro power development.

Till date around 480 projects up to 5 MW aggregating capacity of 1, 180 MW has been allotted.