The small hydro-power development programme for the Himalayan region is open to the private sector also. The general impression was that only local bodies, cooperatives, non-government organisations and citizen groups are eligible to take part in the scheme.
Global Environmental Facility (GEF) India chief Pradeep Monga says private entrepreneurs can also join the scheme. Already four private entrepreneurs have been selected and they are receiving assistance under the scheme, he told Business Standard.
These firms are: Power Himalayas (1,000 kw project at Solang), Sai Engineering Foundation (800 kw project at Titang), Indu Sri Power (800 kw project) all three in Himachal Pradesh besides Rani Tea Estate (100 kw plant) in Assam.
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The hilly area small hydel-power development programme has been launched by the GEF in cooperation with the United Nations Development programme (UNDP) and the Union government to promote small power projects in the Himalayan and the sub-Himalayan regions.
The GEF has allotted $7.5 million for the purpose. The Union government is providing $7million. Besides, the GEF has created a $1.4 million revolving fund to provide 10 per cent interest subsidy on loans.
The GEF has targeted to release $1.5 million for development of projects under the scheme in 1998.
The plan is to take up about 100-125 projects to be executed by 20-25 select agencies.
The promoters will not only be given financial assistance, but would also be given managerial and operational guidance. They would also be supplied with the latest state-of-the art technologies to make best use of the projects they undertake.
The idea behind the scheme is that if small hydel-projects are promoted, the inhabitants would get power for household needs. This would protect the forests, save the bio-diversity, minimise the incidence of soil erosion, flooding and help reduce emissions of greenhouse gases.
The scheme aims at harnessing the potential of the numerous streams and rivers in the region to generate electricity. Twenty demonstration projects at selected sites are proposed to be put up.
The surplus electricity generated can be fed back into the grid. On the part of the users, they would be required to pay for the operational costs only. The projects are expected to become operational by the end of 1999.
The programme is meant to benefit the people in the hilly areas of the Himalayas.
It is felt the large hydro-electricity dams cannot effectively cover the whole area nor can effectively meet their energy requirements to help them raise their living standard. These dams on the other hand would degrade the environment.
The total population is 23 million and most of them live below the poverty line. The mountains cover an area of 400,000 sq. kms.