Firm takes up small hydro projects in HP

Paonta Sahib-based A Power Himalayas Ltd is taking up micro hydel projects in Himachal Pradesh.

The chairman and managing director of the company, Arun Sharma, said, "We propose to put up three projects in Solang Valley, district Kullu in Himachal. He said once the project is allotted it will take six years to complete.

The first micro hydel project of the company was commissioned in 2002-03. It was acclaimed the best project by the UNDP (United Nations Development Programme). It is a one Mw project, used for the firm's in-house operations.

Two more projects of 2.25 Mw and 2.5 Mw would be set up by the company in Solang district of Kullu. The construction of 2.25 Mw project is on and that of the other will commence in six months.

The company would sell the surplus power to the State Electricity Board at a rate of Rs 2.50 per unit. The company has entered into an agreement for 40 years with the state government for the purchase of power.

The company is also exploring the possibilities of putting up similar projects in Uttaranchal. An investment of about Rs six crore is required for a micro hydel project. The operation and maintenance cost is about 3-6 per cent of the capital cost, which depends on the size and location of the plant.

According to Sharma, there are hundreds of streams and rivulets in Himachal Pradesh that can generate power under micro hydel projects. The large players are not interested to exploit that potential as it might not be viable for them. Since the Himachal government has reserved the micro hydel projects up to 4 Mw for Himachalis, local entrepreneurs can take advantage of this.

"As a business traveller to countries like Norway and Scandinavia, I realised how fruitful it can be to produce hydro electricity from streams. The global understanding on the subject was the main driving force behind the decision of going in for micro hydel projects," he said.

He informed that in the first ten years the project is not very lucrative as the capital cost is high and repayment to bank is also substantial, but after a couple of years it is only operation and maintenance cost.

Sharma, a qualified hydraulics engineer, is confident that many local Himachali entrepreneurs will follow suit once his other projects get streamlined.

He said it was the best way to create sustainable employment opportunities in the state because the existing manufacturing units might pack their bags once the tax holiday period is over.

"But water is a renewable resource and with the ever increasing demand for power there were ample opportunities for those keen in investing in micro hydel projects," he added.