"The most important aspect is using water to create energy. We have Western Ghat where we can have low intensity low size projects which don't require environment clearances," he said at a conference here on exploring energy frontiers, organised by IIT-Bombay Alumni Association.
In last two decades, proposals have been floated to establish hydro electricity projects across river Mhadei to generate hydro electricity power.
Parrikar said the projects can be of smaller volume - generating power up to two mega-watt.
The Chief Minister said the country can add power up to 30,000 MW to its grid in next three years through such hydro electricity stations.
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Responding to various investment proposals in alternative energy field submitted during the conference, Parrikar offered to finance such projects.
"State government has provided Rs 3-4 crore for research through science and technology department. We are ready to finance, if anyone comes with the good proposal of experimentation and research in these areas," he said.