3rd May, 2002
Ministry of Power & Non-Conventional Energy Sources


CENTRAL PSUs TO OFFER ASSISTANCE TO STATES FOR EXECUTION OF VIABLE SMALL HYDRO PROJECTS


It has been decided that Central PSUs like NHPC, N EEPCO, THDC, NTPC and BBNB would offer assistance to States for undertaking execution of viable small hydro projects. This was decided at a meeting convened by the Minister of Power, Shri Suresh Prabhu, here today which was attended by the Minister of State (Independent Charge) for Non-Conventional Energy Sources, Shri M. Kannappan, Secretary, Power, Secretary MNES, Secretary, Water Resources and CMDs of all CPSUs of the Power Ministry as well as Chairman, CEA.

It was decided that all State Government would be advised by the Ministry of Non-conventional Energy Sources to announce their policies for small hydro development. The CPSUs identified as specialised executing agencies in execution of small hydro projects, would liaise with State Governments and work out feasibility of all identified small hydro projects within three months. Wherever possible, the involvement of local community would also be enlisted for utilization of energy generated from these projects. Local communities would also be encouraged to take up the operation of generating and distribution systems.

In view of view of the environmentally benign nature of small hydro projects, it was decided to involve all the power CPSUs in assisting the States in developing the balance small hydro potential. It was felt that small hydro projects would be good candidates for assistance under Clean Development Mechanism (CDM) and would also be helpful in rural electrification for remote and difficult villages, besides serving as focal points for distributed or decentralized generation.

The NEEPCO has carried out a comprehensive study of mini, micro and small hydro projects in the North Eastern region. The States are being contacted to identify the number of villages which could benefit from the execution of this programme. The Minister of Power, Shri Suresh P. Prabhu, was keen that the local communities be identified and involved for village electrification programme in the North East.

In States having vast irrigation networks the possibility of exploiting canal drops for development of small hydro was also emphasized. Some states have already taken a lead and the others are being requested to exploit this available potential.

The Ministry of Non-Conventional Energy Sources is keen that the regulatory authorities should specify a percentage of renewable energy as a mandatory offtake from renewable sources.

   
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