HP mulls spending Rs 80,000 cr on power sector

To exploit the untapped hydel potential of Himachal Pradesh, the state government plans to invest Rs 80,000 crore in the next decade and rope in top private and state-run companies.

"This will help Himachal become the power centre of the country," said Himachal Pradseh Chief Minister Virbhadra Singh here today while releasing Himachal's new power policy. "We have exploited 6,150 Mw of hydel power and will try to tap 21,000 Mw in the next decade or so," he said.

At 21,000 Mw, the hill state has a quarter of the entire country's power potential. "Himachal achieved 100 per cent electrification way back in 1988 and it offers the lowest power tariffs in the country to all segments of consumers," he added.

"Over 78,000 km of overhead lines have been laid. The highest power project in the country is located at Rongtong at 13,000 ft above the sea level and the country's highest village Komik at 15,025 ft above the sea level has already been electrified," Singh said.

Talking about the main policy points of the power policy released here, Himachal Power Minister Vidya Stokes said, "Projects up to 2 Mw will be earmarked for locals, and preference will be given to locals for investing in hydel projects up to 5 Mw."

"Projects above 5 Mw and up to 100 Mw shall be allotted to Independent Power Producers (IPPs) through memorandum of understandings route by giving wide publicity for attracting the bidders and above 100 Mw through international competitive bidding," the power minister added.

The Himachal government will have the right to equity participation in the private sector projects of above 100 Mw up to 49 per cent, the policy says.