Uttarakhand power policy on the anvil

In the face of the mega 6,000 Mw Pancheshwar multi-purpose project hanging fire, the Uttarakhand government is revising its power policy focusing on mini, small, solar-based, bio-mass projects and safeguarding the interests of locals by their participation in such ventures.

The policy is likely to be released by early next year, top officials said adding its draft is in the final stages.

Chief Minister B C Khanduri, who is now advocating a separate rehabilitation policy, has already asserted that his government would only build small projects in the state.

The government is opposing big dams in the light of fresh reports that the centre spent a huge Rs 10,000 crore for building the 2,400 Mw Tehri dam, which saw the submergence of the Old Tehri town as well as nearly 125 villages in the reservoir. The lingering rehabilitation problem of Tehri dam is still continuing with the state government seeking a fresh package of Rs 250 crore.

With the Centre seeking approval from the Uttarakhand government on its move to build the Pancheshwar hydel project, thrice the size of Tehri dam, on the river Kali in Pithoragarh and Champawat districts bordering Nepal, the officials said a nod in this regard is unlikely as the new dam would create much bigger rehabilitation problem than the Tehri in the context of the new policy.

For devising the policy, the government is also seeking suggestions from experts.

The Uttarakhand Infrastructure Projects Company (UIPC) Pvt Ltd, a joint venture company of the state government and the Infrastructure Leasing and Finance Services (IL&FS), has been given the task to prepare project reports of various hydro projects in addition to those already allotted or are in the process of being allotted.

When contacted, Additional Chief Secretary Indu Kumar Pandey said: "We are now focusing on small, mini, bio-based and solar-based projects in the new policy which is now in the final stages."

The government would try to safeguard the interest of the local people by offering them some stakes or full share in the new ventures. To start with, at least 5 per cent equity in the project is being proposed in small projects. In some ventures, the government can offer know-how to the village communities who can themselves build the dams by raising equity through loans.

As scores of industries have set up new units in the state to get tax benefits, the government would also encourage them to go for captive power generation.

In the new allotments, bidding process would be done in such a way that the government gets maximum premium.

Meanwhile, the centre has asked the government to go for coal-based energy. The state government is, however, finding it tough to venture into the coal sector since it would depend on coalfields outside the state. "Coal will not be a favourable option for our state," an official of the Power Department said.

Currently, Uttarakhand needs 15.5 million units of power daily whereas the power production in the state stands only at 5 million units.

To meet the gap, Uttarakhand is taking 6.5 million units of power from the central pool. Besides 2 million units are being overdrawn. Apart from this, the state is also taking back one million unit which it had banked in Punjab and Haryana. But all this has left with a deficiency of 2-3 million units of power, officials said.

Uttarakhand has already identified 20,000 Mw of hydel power. Nearly 400 projects in this regard have also been proposed.

Till now, Uttarakhand is generating only 2,819 Mw of power. At present, different projects with the capacity of generating 11,480 Mw of power are at various stages of construction.