New hydro power policy soon

Hydro power projects below 25 Mw are considered to come under renewable energy

The government is looking at a policy push to resurrect the languishing hydro power sector.

Officials said this would cover projects of the private sector and those of state-owned NHPC.

“The government is looking at financial incentives. Interest subvention would be supported with central funding for at least half the interest payment. (More of) Tax depreciation would help bring private sector interest,” said a senior power ministry officer, requesting anonymity.

Also, to keep the cost of power from upcoming hydro projects under check, the government would look at regional pooling on rates. Hydro power supply is currently at Rs 3-3.15 a unit; for