Small hydro projects, small hydro projects india, shp, mini hydro, micro hydro, Three hydro power projects of 2120 MW capacity in Jammu and Kashmir in joint venture between State Power Development Corporation (JKSPDC), National Hydroelectric Power Corporation (NHPC) and the Power Trading Corporation of India (PTCI), have been cleared !!
TABLE OF CONTENTS
1. SMALL HYDRO POWER PLANT DESIGN
2. LATEST NEWS AND VIEWS
3. CLASSIFICATION OF HYDRO POWER PLANTS
4. CURRENT SCENARIO FOR SMALL HYDRO PLANTS
5. HOW ELECTRICITY IS GENERATED IN A SMALL HYDRO PLANT
6. HOW TO BUILD A SMALL HYDRO PLANT DIY
6. MNRE REPORT: SUBSIDIES FOR SMALL HYDRO
7. FINANCING OF SMALL HYDRO PROJECTS
8. LIST OF SMALL HYDRO POWER PROJECTS IN INDIA
9. BE BTECH PROJECTS ON SMALL HYDRO
10. RESEARCH PROJECTS ON SMALL HYDRO
11. SMALL HYDRO BUSINESS OPPORTUNITIES
12. REGULATIONS ON SMALL HYDRO POWER PROJECTS
LATEST NEWS AND VIEWS
HYDROPOWER INDIA MARKET OUTLOOK UPTO 2025 :NEW STUDY !!
"Hydropower (Large, Small and Pumped Storage) in India, Market Outlook to 2025, 2013 Update - Capacity, Generation, Regulations and Company Profiles” is the latest report from GlobalData, the industry analysis specialists that offer comprehensive information and understanding of the hydropower market in India. The report provides in depth analysis on global renewable power market and global hydropower market with forecasts up to 2025. The report analyzes the power market scenario in India (includes thermal conventional, nuclear, large hydro and renewables) and provides future outlook with forecasts up to 2025. full report
Small hydro is the second largest renewable energy contributor to electricity production in India (after wind). From about 1500 MW end of 2002, by end of 2010 the installed capacity had grown to about 2800 MW, growing at a CAGR of about 8% for the period.
Total available potential
Estimated potential - 15,000 MW
Identified 15,384 MW through 5718 sites (Average 2.7 MW per site)
Installed capacity is 3421.51 MW (13.3% of total) as of Aug 2012
ü Target capacity addition in 11thplan (2007-12): 1488 MW
ü Installed capacity grew from 2403 MW in 2009 to 3421.5 in 2012. (CAGR of 12.5% and 9% from 2004-2009). Expected to grow even faster, at 13% for 2010-15.
ü PPAs with attractive tariffs
ü Capital subsidies
ü Exemptions from taxations and duties
ü No techno-economic clearance is required for projects up to Rs.250 crores ($40 million) investment
ü 17 States have so far announced their policies to invite private sector to set up SHP projects.
ü Over 2600 MW capacity SHP sites offered/allotted to private sector by the States to set up SHP projects
ü MNRE has created special facilities for SHP performance testing
Small hydro investment in India grew significantly since 2008 - Rs. 2425 crore in 2009 and Rs. 2645 crore in 2010 (about 15% of total RE investments), compared to just Rs. 617 crore in 2007
ü Delays and long timelines for approvals
ü Long distances between generation stations and consumption centers lead to poor efficiency of transmission and distribution
ü Geological and social uncertainties
ü Regulatory challenges
Cost of power generation
Rs. 2-3/kWh. This cost includes O&M costs, insurance, depreciation, and loan repayment costs
LATEST NEWS AND VIEWS
* Oil major ONGC is showing interests in participating in hydel power projects by expanding the scope of the ONGC-Tripura Power Company Ltd
ONGC Tripura Power Company Ltd is a joint venture between ONGC, Infrastructure Leasing and Financial Services Limited (IL&FS) and the Government of Tripura for implementation of the 726.6 MW CCGT thermal power project at Palatana in Tripura to supply power to the power deficit areas of the north-eastern states. After the meeting, Bahuguna asked the power department toprepare a blue print for all those power projects which has received clearances from the union ministry of forests and environment.
He asked them to hold another meeting with ONGC officials for the development all these projects.
Faced with acute paucity of funds, Uttarakhand has been trying to attract private players in the hydropower sector by offering joint ventures with Uttarakhand Jal Vidyut Nigam, the state-run power generation company. The sector received a severe jolt after the Centre scrapped several big hydel projects including NTPC’s 600 MW Lohari Nagpala project on Bhagirathi river on environmental and religious grounds. more
* Sources within NHPC sat that the Corporation has turned down the proposal of the J&K state government to return Salal, Uri and Dulhasti Hydroelectric Power Projects to the state on the depreciated cost. more 22 may12
* Steady growth in small hydro power; however significant challenges remain..." ICRA
While India‘s total installed capacity for small hydro power (SHP) units reported a significant increase from 1,909 MW as in March 2006 to 3,300 MW as in January 2012, thereby taking up SHP‘s share of the country‘s total installed renewable energy (RE) capacity to almost 15%, considerable potential1 still remains untapped across States with favourable SHP potential.
The low utilisation of the country‘s SHP potential is attributable to several factors, including: challenges in setting up plants in difficult and remote terrain; delays in acquiring land and obtaining statutory clearances; inadequate grid connectivity; and high wheeling and open access charges in some States.
SHP plants have certain inherent advantages: they generate "clean energy" at a competitive cost; they have features that make them suitable for peaking operations; they are less affected by rehabilitation and resettlement (R&R) problems vis-à-vis large hydro power plants; they can meet the power requirements of remote and isolated areas; and they use mature and largely indigenous technology.
Recent amendments to grid code augur well for SHP plants
In the matter of grid integration, the recent amendments in Grid Code are a positive for SHP plants with less than 10 MW capacity. As per the amendments, renewable energy power plants including SHP plants with installed capacity of less than 10 MW (excluding higher capacity SHP plants and nonfossil fuel based cogeneration plants) will be treated as ��-MUST RUN‘ power plants and will not be subjected to ��-merit order dispatch‘ principles. Also, the allowed variation of up to ( /-) 30% of the schedule and the burden of applicable Unscheduled Interchange (UI) charges to be shared among system users on an all-India basis and not on project developers and permission to fine-tune schedules (based on the forecast) as close as three hours before the actual generation should facilitate further integration of SHP projects. source
* The risk of there not being enough water in the stream — the ‘hydrology risk’ — is the “single largest risk” that a small hydro project faces, says a study of the rating and analysis agency, ICRA.
The study went into the question of why small hydro projects — projects of less than 25 MW capacity — have not been happening on a scale consistent with the potential in India. It found out that after ‘hydrology risk’, the risk of ‘containment of capital cost’ was the second biggest stumbling block.
As of January 2012, there were small hydro projects (SHPs) of a total capacity of 3,300 MW in the country, as against the estimated potential of 15,384 MW. It is estimated that half the potential exists in Himachal Pradesh, Uttarakhand, Jammu & Kashmir and Arunachal Pradesh. But, surprisingly, most of the SHPs (26 per cent by capacity) are in Karnataka.
Mr S. Chandrasekhar, Managing Director, Bhoruka Power, a company that owns 150 MW of SHPs, agrees with ICRA on ‘hydrological risk’. He notes that while there is sufficient data on water flows in large rivers, there is practically no such data on flows in the smaller rivers and streams, where typically a SHP might be put up.
“We have to adopt the ‘synthetic model’”, Mr Chandrasekhar told Business Line, referring to the water-flow data arrived at by taking rainfall statistics and making adjustments to it. The ICRA report also noted that, on the other hand, the recent amendments in the Indian Grid Code would give a fillip to the construction of SHPs. Basically, the grid code says that SHPs must be “treated as ‘must run’ under merit order despatch”, which means that the utilities should buy the power the SHPs generate even if lower cost electricity is available from other sources. source
NHPC Limited (formerly National Hydroelectric Power Corporation) is an Indian electric utilities company that was incorporated in the year 1975 with an authorised capital of Rs 2,000 million and with an objective to plan, promote and organise an integrated and efficient development of hydroelectric power in all aspects.
Later on NHPC expanded its objects to include other sources of energy like Geothermal, Tidal, Wind, etc.
At present, NHPC is a schedule 'A' Enterprise of the Govt. of India with an authorised share capital of Rs 1,50,000 million.
In 2009-2010 NHPC made a profit after tax of Rs 2,090 crores (Rs 20.9 billion). An increase of 94 per cent than the previous year profit of Rs 1,050 crores (Rs 10.5 billion).
NHPC is among the top 10 companies in India in terms of investment. Department of Public Enterprise, Government of India recently conferred prestigious Miniratna status to it.
* Small hydro is the development of hydroelectric power on a scale serving a small community or industrial plant. The definition of a small hydro project varies but a generating capacity of up to 10 megawatts (MW) is generally accepted as the upper limit of what can be termed small hydro
Small hydro can be further subdivided into mini hydro, usually defined as less than 1,000 kW, and micro hydro which is less than 100 kW. Micro hydro is usually the application of hydroelectric power sized for smaller communities, single families or small enterprise.
Small hydro plants may be connected to conventional electrical distribution networks as a source of low-cost renewable energy. Alternatively, small hydro projects may be built in isolated areas that would be uneconomic to serve from a network, or in areas where there is no national electrical distribution network. Since small hydro projects usually have minimal reservoirs and civil construction work, they are seen as having a relatively low environmental impact compared to large hydro.
Small hydro is often developed using existing dams or through development of new dams whose primary purpose is river and lake water-level control, or irrigation. Many companies offer standardized turbine generator packages in the approximate size range of 200 kW to 10 MW. These "water to wire" packages simplify the planning and development of the site since one vendor looks after most of the equipment supply. Since non-recurring engineering costs are minimized and development cost is spread over multiple units, the cost of such systems is improved. While synchronous generators capable of isolated plant operation are often used, small hydro plants connected to an electrical grid system can use economical induction generators to further reduce installation cost and simplify control and operation.
Hydro Power Project Classification
Hydro power projects are generally categorized in two segments i.e. small and large hydro. In India, hydro projects up to 25 MW station capacities have been categorized as Small Hydro Power (SHP) projects. While Ministry of Power, Government of India is responsible for large hydro projects, the mandate for the subject small hydro power (up to 25 MW) is given to Ministry of New and Renewable Energy. Small hydro power projects are further classified as
|Class||Station Capacity in kW|
|Micro Hydro||Up to 100|
|Mini Hydro||101 to 2000|
|Small Hydro||2001 to 25000|
SHP qualified for CDM benefits
* Small Hydro in Tamilnadu
- Small hydro is the third largest renewable energy contributor to electricity production in TN (after wind and biomass).
- Estimated potential – 659.51 MW through 197 sites for small hydro in Tamil Nadu
- Installed capacity is 94.05 MW as of Nov 2011. In addition, 6 more projects totaling 33MW is in the process of getting commissioned.
- TANGEDCO has also proposed to establish small hydroelectric projects of capacity less than 25 MW in the run of river scheme with total capacity of 110 MW.
- A number of mini/micro hydro projects are being set up in remote and isolated areas. A number of tea garden owners are also setting up micro hydel projects to meet their captive requirement of power.
- All SHPs that are currently in operation are state owned and there is only one small hydro project of 350kW capacity that is a private sector investment.
- Organizations such as the Water Mill Associations, cooperative societies, registered NGOs etc., are being encouraged to install watermills in their areas for electricity generation to meet small scale electrical requirements of villages.
http://cdm.unfccc.int/filestorage/J/F/8/JF80R274XLEH19IODG5AK6PCYUN3MT/45. TNERC Paper?t=b3R8bTRqcGdrfDAKCuVULag0x-UfS6e6_pMw Additional information about small hydro in tamilnadu is given here.
Small Hydro Power Programme
Small Hydro Power ( SHP) Programme is one of the thrust areas of power generation from renewable in the Ministry of New and Renewable Energy. It has been recognized that small hydropower projects can play a critical role in improving the overall energy scenario of the country and in particular for remote and inaccessible areas. The Ministry is encouraging development of small hydro projects both in the public as well as private sector. Equal attention is being paid to grid-interactive and decentralized projects.
Aim: The Ministry’s aim is that the SHP installed capacity should be about 7000 MW by the end of 12th Plan. The focus of the SHP programme is to lower the cost of equipment, increase its reliability and set up projects in areas which give the maximum advantage in terms of capacity utilisation.
Potential: An estimated potential of about 15,000 MW of small hydro power projects exists in India. Ministry of New and Renewable Energy has created a database of potential sites of small hydro and 5,415 potential sites with an aggregate capacity of 14,305.47 MW for projects up to 25 MW capacity have been identified
* “Power demand has gone up this summer compared to previous years. The average demand is between 2,700 to 2,800 MW currently in the state, which is much higher than OERC (Odisha Electricity Regulatory Commission) approval of 2,635 MW,” said P K Pradhan, commercial director with Gridco. May 2012
* The Arunachal Pradesh government has signed a number of MoUs with private firms under the public-private partnership model for as many as 13 hydro-power projects in the two districts, seven on the Lohit and rest on its tributaries. "We are not against tapping hydro-power potential as a national asset for revenue. But the process of signing MoUs under the PPP is faulty," Khapriso Krong, a former minister residing in Tezu, says.
The public hearing for Lower Demwe, the first project in the cascade arrangement, had its share of problems. Residents complain that not everybody was given a chance to raise their objections. more
Small hydro sector should be given status of zero/nominal duty under GST, says FICCI
* Maharastra state government aims to increase the power generation through private small hydro power (SHP) projects from the present 9 megawatts (mw) per year to 30 megawatts
“Nearly 53 megawatts of power has been generated by the SHP projects in the last six years. We want to achieve an annual target of generating 30 megawatts, in the next five years’ span,” Modak said.
The bureaucrat was speaking at the seminar on “Implementation of Hydro Projects through private participation” held at the Institution of Engineers Hall in Shivajinagar on Tuesday.
According to him, nearly 150 SHP projects will be working towards power generation in this period, out of which 50 projects have been installed and 50 are in the pipeline. Modak cited the problems of land acquisition, delay in issuing licence and other issues that act as barriers in the SHP projects.
“By accelerating the private projects of power generations and simplifying the licensing process, we aim to achieve our target efficiently. The Maharashtra government’s hydro policy 2005 through which SHP projects are being constructed and completed by private entrepreneurs is also helping in achieving the objective,” he said. source
Srinagar, June 14: Decks have been cleared for execution of three hydro power projects of 2120 MW capacity in Jammu and Kashmir in joint venture between State Power Development Corporation (JKSPDC), National Hydroelectric Power Corporation (NHPC) and the Power Trading Corporation of India (PTCI).
The Registrar of Companies, government of India, has formally okayed setting up of joint venture company - Chenab Valley Power Projects Pvt Ltd (CVPPPL) - under which three mega power projects - Pakal Dul (1000 MW), Kiru (600 MW) and Kawar (520 MW) - are to be executed. The certificate of incorporation was issued on June 13, 2011.
“We have received the certificate of incorporation for the new company. Work on the projects would be taken up soon,” chairman, Board of Directors, CVPPPL, MY Khan told Greater Kashmir.
The incorporation of the CVPPPL follows the promoters’ agreement among JKSPDC, NHPC and PTC India Ltd on December 31, 2010. Scheduled for completion in next six years, the projects are likely to cost more than Rs 15000 crore.
“We will be taking up execution of Pakal Dul first followed by Kiru and Kawar for which the global tenders will be invited,” said Khan.
The paid-up equity share capital in the company shall be contributed by NHPC, JKSPDC Ltd and PTC in the ratio of 49:49:2 respectively. “Of total power generated from the projects the share of state shall be 62 percent,” Khan said.
The state would have an assured share of about 1179 MWs of power with the first right of refusal for the remaining 941 MWs from the entire project, said a PDC official, adding it would to a greater extent address the power requirements of J&K.
Against the requirement of more than 1500 MWs the local power generation is around 750 MWs including 450 MWs produced from Baghliar-I. State regularly imports more than 750 MWs of energy from northern grid to meet its local energy requirements. The import has been constantly draining the meagre finances of the state. Last year JKs Power purchase bill had whopped up to Rs 2,500 crore and is expected to swell up to Rs 3000 for this financial year.
In May 2008, the state government had taken a decision in New Delhi in consultation with the Union Power Ministry to float the Chenab Valley Power Development Corporation (CVPDC), now rechristened as CVPPPL, to exploit Chenab basin water resources for power generation. The decision was taken at a meeting attended by the then Union Minister of State for Power, Jairam Ramesh, the then J&K Power Minister, Babu Singh, the then Secretary PDD, Sandeep Naik, and the then Resident Commissioner New Delhi, S V Bhave.
On October 10, 2008, MoU was signed between the NHPC, JKSPDC and PTC for setting up the joint venture company under the Companies Act 1956 to construct, commission and operate the power projects after obtaining approval from the Government of India and the Jammu and Kashmir Government.
On June 13, 2009, the state government ratified the MoU without any amendment. The approval was accorded under cabinet decision No. 168.
As per the MoU the JKSPDC would have a share of not more than 49 percent while the NHPC would have share of not less than 49 per cent in the new company. Several trade bodies, civil society groups and political parties had opposed this MoU clause. They argued that “not more than 49 percent” would mean the investment by the state-owned JKSPDC would be restricted to anything between zero and 49 per cent even as it would always find itself handicapped for want of money.
Pakal Dul project is to be constructed on river Marusudar in Warwan-Marwah area of district Kishtwar and is likely to cost Rs 5,511.83 crore. Kiru project is planned as a run-of-the-river scheme over Chenab river at a location 25 km upstream of Dulhasti in Kishtwar district at a cost of Rs 2381.92 crore. Kawar project is planned as another run-of-the-river scheme over Chenab river near village Padyarna in Kishtwar district at a cost of Rs 3386.11 crore.
Alternate Hydro Energy Centre, an academic centre of Indian Institute of Technology, Roorkee was established in the year 1982 and has celebrated 2007 as silver jubilee year.
AHEC has been providing professional supports in the field of Small Hydropower Development covering planning, Detailed Project Reports, Detailed Engineering Designs and Construction drawings, Technical Specifications of Turn Key execution/equipment Supply, Refurbishment, Renovation and Modernisation of SHP Stations, Techno-Economic Appraisal, R & D/Monitoring of Projects, Remote Sensing and GIS Based Applications. Technical support to over 25 different state and central government organizations for shp development has been provided. IPPs and financial institutions are utilizing its expertise support for their SHP development.
AHEC also worked for several projects related the conservation and management of water bodies.
AHEC has developed two new designs of water mills for grains grinding
A) Patent No. 230527 "A Horizontal Open-Cross Flow Turbine"B) Patent No. 231697 "A Water Mill Used For Grinding Grains"and for mechanical/electricity generation purpose for the hilly region of the country.
AHEC has been imparting training to the field engineers and technologists through short-term training courses to create trained human resource including of neighboring and developing countries in the field of renewable energy. AHEC offers a four semester Master of Technology (M.Tech.) course in "Alternate Hydro Energy Systems". AHEC also offers three elective subjects on Renewable Energy to bachelor of engineering students of the Institute. Ph.D. Programme is also offered by AHEC in the field of "Alternate Hydro Energy". A M.Tech. programme in "Environmental Management of Rivers and Lakes" fully sponsored by Ministry of Environment and Forests, GOI is being offered since 2004 to the officers state / local / central government organizations.
AHEC has signed a Memorandum of Understanding with Government of Uttaranchal, Bihar and Himachal Pradesh, Jammu & Kashmir to work as expert agency for the development of small hydropower in Uttaranchal. It has set up Instrumentation laboratory to provide independent performance testing of hydropower plants.
A real time digital SHP simulator has been established for training and design with the support from MNRE, Govt of India and UNDP under CCFII.
AHEC has been entrusted the task of conducting performance field testing and certification of small hydropower stations using latest performance testing equipments by the Ministry of New and Renewable Sources, Govt of India.Information booklet for Performance Testing of SHP Stations : A Guide for Developers, Manufacturers and Consultants, Dec 09
Real time digital simulator for small hydropower plants for training has been estabilshed at AHEC
- Real Time Digital Simulator for Small Hydropower Plants (Download brochure pdf file)
- Training modules (Download brochures pdf file)
- Training schedule (Download brochures pdf file)
4. Film on Simulator
Attention: Hydropower Equipment Manufacturers, independent power producers, EPC contractors, consultants and others indenting to diversify into hydropower.
Alternate Hydro Energy Center (AHEC), Indian Institute of Technology (IIT), Roorkee is in the process of establishing an international-level hydro turbine laboratory with the intention to setup design and validation facility in addition to conducting research in hydro turbines and other hydro mechanical equipments conforming to national and international standards. AHEC is already into on-site performance testing of small hydropower stations as per IEC 60041 and IEC 6116 and other international/ national standards.
Your suggestions on desirability and nature of such facility and its possible utilization by you are solicited.
For details with suggested format (pdf file) for response please visit sitehttp://www.iitr.ernet.in/departments/AH/pages/index.html or the same can be obtained by post or e-mail from the office of the Head, Alternate Hydro Energy Centre, Indian Institute of Technology, Roorkee-247 667, Uttarakhand (India), Phone 01332-274254, 285213, Fax: 01332-273517, 273560, E-mail: email@example.com or firstname.lastname@example.org
Preparing the standards, guidelines for Small Hydropower (SHP) through consultative process. We invite the experts/field engineers, field managers to express their willingness to contribute in preparing such standards/guidelines/manuals (as attached)
Model Detailed Project Reports (DPRs) for rural electrification based on Small Hydro, Solar Photovoltaic and Biomass Gasifier Technology under different geographical and population condition are available.
Model tender specifications for remote village electrification based on Micro Hydro Power, Biomass Gasifier and Solar Photovoltaic are available.(html link)
The Jammu & Kashmir State Power Development Corporation Limited
IMPLEMENTATION AGREEMENT FOR HYDRO POWER PROJECT
(From 2 to 100 MW Capacity)
PROJECT AWARD conditions
SALE OF POWER AND ROYALTY ENERGY of Jammu & Kashmir State Power Development Corporation Limited
Obligations of the IPP in Jammu and Kashmir
Commercial Operation Date (COD)
Incentives for Early Commercial Operation of the Project:-
Monitoring and Supervision of the Project in J&K
Execution of Upstream and Downstream Projects in J&K
Usage of Forest Land in Jammu & Kashmir State
Obligations of the GoJK and Corporation
Upgradation of Roads and Bridges in GoJK
Undertakings of the GoJK Corporation
Undertakings of the IPP
BOOT Build Own Operate Transfer
COD Commercial Operation Date. This would mean the date
on which the project begins commercial operation.
Concession Period Concession Period shall mean 35 years of operation of
the project by the IPP from scheduled COD.
CPSU Central Public Sector Undertaking
CSR Corporate Social Responsibility
CTU Central Transmission Utility
DPR Detailed Project Report
EIA Environment Impact Assessment
EMP Environment Management Plan
PFR Pre feasibility Report
GoJK Government of Jammu and Kashmir
GoI Government of India
HEP Hydro Electric Project
IA Implementation Agreement
ICB International Competitive Bidding
IPP Independent Power Producer
The IPPs would include any Private Investor such as
Private Ltd. Company/Public Ltd. Company/Public Sector
Undertakings/ Partnership concern/ Sole Proprietary/Cooperative
Society /State Governments other than J&K or
any other Government or non Government entity or their
joint ventures or consortiums.
JKSPDCL Jammu & Kashmir State Power Development Corporation
JKSERC J&K State Electricity Regulatory Commission
JKPDD Jammu & Kashmir Power Development Department
JV Joint Venture
LADF Local Area Development Fund
MoU Memorandum of Understanding
NHPC National Hydroelectric Power Corporation.
O&M Operation and Maintenance
PPA Power Purchase Agreement
R&R Resettlement and Rehabilitation
RFP Request for Proposal
RFQ Request for Qualification
SHP Small Hydro Power Project
SDU State Distribution Utility
In J&K, power generation from projects of 2 MW and above is the responsibility
of the State owned Jammu & Kashmir State Power Development Corporation
Limited (JKSPDCL). Transmission and distribution is directly with the GoJK, i.e.
JKPDD. JKSPDCL was carved out of JKPDD in 1989 and incorporated as a
Company in 1995 with the mandate to plan, execute, operate and maintain all
generating stations including such stations that existed at the time of creation of
The installed capacity of 21 operational powerhouses of JKSPDCL is 929.70 MW
comprising of 754.70 MW of Hydel Stations with the largest being 450 MW
Baglihar HEP Stage I and 175 MW of Gas turbines. In addition, installed capacity
of the projects under operation with NHPC is 1680 MW from which free power to
the extent of 12 % of the installed capacity is available to the State.
of projects under operation in the State are at Annexure I:
At present the unrestricted demand in the State is 2425 MW while suppressed
demand is 1492 MW with scheduled curtailment. Thus there is a deficit of about
933 MW vis-a-vis even the restricted demand. However, this deficit does not
capture the grim situation adequately - the peak demand in the harsh winter
conditions surges up and that is precisely the period when generation from hydel
stations dwindles substantially due to lean discharge in the rivers. Consequently
the State has to rely mainly on the allocation from Central Power Stations and is
often forced to overdraw from the grid, attracting Unscheduled Interchange and
Due to purchase of considerable amounts of power from the
northern grid and overdrawals under UI regime, the State suffers substantial
drain of its resources on this account. Harnessing of available hydro potential,
shall therefore, automatically result in improving of power situation in the State.
The demand pattern in the State comprises 35% domestic and 65% nondomestic
On per capita basis, the State consumes 750 units
compared to 872 units in Himachal Pradesh, 706 units in Uttarakhand, 1506 units
in Punjab, 1208 units in Haryana and 671 units national average. Going by the
projected growth pattern, the power demand in the State is estimated to be
about 2600 MW in 2012-13 and about 5500 MW in 2025-26.
Government of Jammu & Kashmir, vide Govt. Order No. 211-PDD of 2003 dated
9.10.2003,brought out its Hydel Policy to encourage private sector participation
in development of Hydro Projects.
In order to give further impetus to exploitation of hydel potential, the State
Government has decided to revise the State Hydel Policy of 2003 to fulfill the
1. Expeditious development of available hydro power of the State.
2. Maximization of benefits to the State by meeting its power requirements
and giving a fillip to economic growth.
3. Provide employment opportunities to the people of the State.
4. Develop hydropower projects in an environment-friendly manner with
minimum dislocation of project affected people.
5. Provide for creation of social and development infrastructure of the local
area by hydro power developers and through the Local Area
6. To accelerate the pace of hydropower development through private
sector participation by removing the implementation related difficulties of
7. To bring in the investment and associated efficiency from the private
STATE POLICY FOR THE DEVELOPMENT OF SMALL HYDRO POWER IN J&K
(Government order No: 211 - PDD of 2003 dated 09 - 10 - 2003)
SCOPE AND OBJECTIVES OF SMALL HYDRO POWER DEVELOPMENT IN JAMMU & KASHMIR:
1.1 Jammu & Kashmir has a hydropower potential of the order of 20,000 MW against which only about 1500 MW has been harnessed so far. The Government of Jammu & Kashmir (GOJK) has decided to encourage generation of power through small hydropower sources of energy and has framed a policy so that the development of this sector serves as an engine to achieve the objective of promoting the all-round development of the region.
2. OPERATIVE PERIOD AND PARTICIPATION:
2.1 This policy shall be in operation from the date of its publication as notified by the Government Order. All projects awarded under this policy will be governed by this policy for their entire duration.
2.2 All Hydropower projects / stations estimated to have an installed capacity of up to 25 MW and as notified by the Jammu & Kashmir State Power Development Corporation (J&KSPDC) from time to time shall be eligible under this policy.
2.3 Jammu & Kashmir Government invites any non-GOJK agency to bid for identified projects for the development of this sector. These will be termed as Independent Power Producers (IPP). This would include any of the private sector entities, central power utilities, state governments or any other government entities and their joint ventures.
3.1 There shall be a pre-qualification by the GOJK of the bidders for the projects in the State based on (a) financial capacity to mobilize the required resources and bring in or raise their equity contribution; and (b) past experience with development, construction and operation of hydro projects or other power sector experience. The applicants will be graded and listed based on the balance sheets, annual reports and other reported evidence of financial and technical capacity.
3.2 The weightage to be given to financial capacity, technical capability, past experience and other relevant attributes of the applicants, the sub-categories of these attributes to be evaluated and their inter-se weightage, the guidelines for evaluation and the passing score on attributes/in aggregate required for pre-qualification shall be specified in the bid documents inviting bids for pre-qualification.
4.1 The projects available for development with indications of estimated capacities, and for which development of pre-feasibility studies is in progress shall be notified by the J&KSPDC from time to time.
4.2 The J&KSPDC will undertake to prepare the pre-feasibility studies in a time bound manner. The evacuation requirements including details of nearest sub-station will be specified in the pre-feasibility studies.
4.3 The projects shall be offered for a period of forty years from the date of the award at the end of which they shall revert to the Government of Jammu & Kashmir or extended further on mutually agreed terms, as per the decision of the Government of Jammu & Kashmir.
4.4 The private land, if any, required for the project shall have to be acquired by the IPP at their own cost. If it is Government land, it will be given on lease for a period of 40 years. All necessary assistance in this regard will be provided by the Power Development Department/Corporation. The construction of approach roads, water and power supplies etc. shall be the responsibility of the IPP.
4.5 In case of canal fall schemes, the availability of water in the canal will be subject to irrigation demand and the IPP does not have any right for additional water for power generation. The decision of Irrigation Department in this regard will be final and binding.
5. PROCESS OF ALLOTMENT:
5.1 The projects shall be advertised in order to seek bids.
5.2 Applications in response to the advertisement should be accompanied by a non-refundable draft of Rs.1.00 lakh only (Rupees One lakh) payable to Jammu & Kashmir State Power Development Corporation (J&KSPDC).
5.3 All bidders will be subject to pre-qualification as provided in paragraph 3. All pre-qualified bidders will be provided with the pre-feasibility studies prepared by the J&KSPDC.
5.4 Bids shall be invited for premium payable upfront to the Government of Jammu & Kashmir per MW in the case of each project/site, subject to a minimum threshold premium of Rs.2.00 lakhs only (Rupees two lakhs) per MW. Bids received beneath the threshold premium will be rejected.
5.5 Projects will be allotted to the bidder making the highest bid.
5.6 The successful bidder shall be required to deposit the premium/other amount due within a reasonable period of receiving intimation regarding his bid being successful. The exact time period shall be specified in the bid documents for invitation of bids. The successful bidder may be permitted to provide 50% of the bid amount in excess of the threshold as a bank guarantee encashable at the time of actual or scheduled financial closure, whichever is earlier.
5.7 If more than one bidder bids the identical premium per MW for any site/station, a gradation list based on pre-qualification criteria described above shall be the basis for allotment.
5.8 In case any project fails to attract any acceptable bid despite being bid out at least twice, the GOJK may consider allotting the site to a GOJK agency.
6. SALE OF POWER:
6.1 The IPP/ bidder can contract to sell power to any HT consumer within Jammu & Kashmir, to local grids within Jammu & Kashmir which are not connected to J&K PDD’s main grid, or to any consumer outside the state, or to the Jammu & Kashmir Power Development Department (J&K PDD).
6.2 Sales to the J&K PDD will be mutually negotiated.
6.3 All sales will be approved, as may be required, by the Regulator.
7. WHEELING CHARGES:
7.1 The infrastructure and facilities of J&K PDD will be made available to all IPPs for wheeling the generated energy.
7.2 Wheeling charges for wheeling the generated energy to third party consumers or outside the State will be as determined by the J&K PDD/J&K SERC. However, for those projects which are bid out prior to the determination of this rate by the J&K PDD / J&K SERC, the wheeling charge (for the entire concession period) would be 10% of net energy supplied at the interconnection point.
7.3 No wheeling charges are applicable in cases of sales to the J&K PDD, or to local grids within Jammu & Kashmir.
7.4 The J&K PDD will prepare a standard “wheeling and banking agreement draft” consistent with this policy statement. This will be made available prior to any bidding for projects.
8. GRID INTERFACING/TRANSMISSION LINE:
8.1 The IPP shall be responsible for laying lines for connectivity to the nearest grid sub-station at the appropriate voltage which will normally be 132 KV or 33 KV depending on the capacity of the power station and the distance from the power station to the Grid substation.
8.2 The J&K PDD will determine the specifications of the evacuation facilities required, including the inter-connection point and voltage and the same would be specified in the project information document provided with the application form.
8.3 On specific request from the IPP, the J&K PDD will carry out the implementation of evacuation facilities at charges to be mutually negotiated.
9.1 Developers can avail of the facility of banking of energy within a fixed period span of two months, which would be specified in the standard wheeling and banking agreement. The point of banking-in would be the inter-connection point at which the developer would feed in the energy into J&K PDD system.
9.2 The energy banked into the grid by the IPP shall be monetized at “the average pooled purchase price paid by J&K PDD” during the month of banking-in (into the J&K PDD system). The amounts so credited to the developer for the banked-in energy would be set off against the monetized value of the banked out energy. The monetization of the banked out energy shall be reckoned on the basis of the average pooled purchase price of electricity by the J&K PDD during the months of banking-out (of J&K PDD system). However, in addition, the loss incurred by J&K PDD on account of over-drawal during peak hours compared to input into the system during the peak hours will be compensated by charging the IPP the average differential between the rate for HT consumers in the State for peak and non-peak hours for the net overdrawal against peak power banked.
9.3 The banked out energy shall be deemed to have been delivered at the inter-connection point. The developer would be required to pay the difference between monetized value of the banked-in and the banked-out energy and the peak period differential adjustment within a period of 30 days failing which a penal interest will be levied on the outstanding amount. Similarly, in case of a balance to the credit of the developer it shall be payable by J&K PDD within 30 days with a provision of penal interest on overdue settlement.
10.1 Priority will be accorded for despatch into the grid by these IPPs ahead of merit order and any other source of supply, subject to any overall restrictions on the proportion of power that may be bought from such sources, which may be imposed by the Government/ Regulator in the interest of keeping the overall cost of power purchase within reasonable limits.
11.1 On all projects governed by this policy, royalty payment for the first 15 years of operation would be exempted in all cases of sale of power outside the State or to the J&K PDD, or to consumers in rural areas not served or inadequately served by the concerned existing distribution license.
11.2 In case of sale to other parties or to J&K PDD after 15 years, a royalty of 12% of net energy wheeled (after deducting wheeling charges) or supplied shall be charged.
12. INCENTIVES BY STATE GOVERNMENT:
12.1 No entry tax will be levied by the State Government on power generation, transmission equipment and building material for projects.
12.2 Small Hydel Projects shall be treated as an industry and few incentives available to industrial units in backward areas shall also be available to these units including toll tax exemption.
12.3 Income accruing from micro-hydel power project shall be exempted from income-tax as per the Government of India policy in vogue for backward areas.
13. TRANSFER OF ALLOTMENT:
13.1 Free transfer of shares will be permitted in the companies allotted projects as per the procedure laid down.
14. TIME LIMIT FOR EXECUTING THE PROJECT:
14.1 IPP shall prepare and submit the detailed project reports and all other information and make the necessary applications for obtaining the statutory clearances and approvals of the State and Central Governments and the Regulator (as applicable) after carrying out the required confirmatory surveys and investigations as per prevailing regulations/ norms within 32 months from the date of allotment.
14.2 The IPP shall be responsible for ensuring completeness of all submissions to concerned authorities. Failure to do so within the stipulated time frame shall be treated as non-compliance with the requirement stipulated in this paragraph.
14.3 The IPP shall achieve the financial closure within 12 months from the date of receipt of all statutory approvals and clearances given by the State and Central Governments. Financial closure would imply firm commitments for financing the entire project, with all pre-disbursement conditions having been fulfilled and the loan documentation being complete.
14.4 The project shall be made operational within 48 months from the date of receipt of all statutory approvals and clearances by the IPP.
14.5 The failure to reach any of the milestones mentioned above will result in automatic cancellation of the allotment of the site, and forfeiture of upfront premium amounts. No compensation would be payable to the IPPs in such instance.
14.6 Failure to reach the milestone as above would result in a liability to pay a penalty by the IPP to the GOJK, computed at the equivalent royalty revenue that would have been payable to the GOJK had the project met the milestone. In case the project enjoys an exemption from royalty in the initial years, the duration of royalty exemption would be reduced by the period of delay.
14.7 The IPP may surrender the allotment back to GOJK if on completion of the DPR, within the stipulated time-frame, it has grounds to establish that the project is not techno-economically viable. On such surrender, the bank guarantee provided by the IPP in lieu of upfront premium would be released and any premium amount paid in excess of the threshold premium of Rs. 2 lacs / MW would be refunded to the IPPs by the GOJK.
15. ROLE OF J&K PDD AND J&KSPDC:
15.1 The J&KPDD will be responsible for preparing the standard wheeling and banking agreement draft, determination of evacuation requirements and overseeing banking, despatch and royalty arrangements.
15.2 The J&KSPDC will be responsible for preparation of pre-feasibility studies, carrying out the bidding process and monitoring of the development of allotted projects/delivery as per time schedules.
15.3 The J&KSPDC will not participate in the bidding process. However, after the allotment, upon request from the IPP, the J&KSPDC may consider participating as a minority partner (with less than 50% shareholding interest) or perform certain tasks for the bidder on a consultancy basis. Such participation would be independently negotiated between J&KSPDC with the IPP and is not mandatory on the part of J&KSPDC.
16. REGULATORY OVERSIGHT:
16.1 Aspects of this policy that require regulatory approvals from the concerned Regulator would be subject to such approvals being given and would apply in the manner approved by the Regulator.
17. DUE DILIGENCE:
17.1 The applicant/IPP shall be responsible for carrying out due diligence with regard to his compliance responsibilities under various applicable Central/ State/other laws, rules and regulations, and ensure compliance with the same.
18. POWER TO RESOLVE DIFFICULTIES:
18.1 In the event of a dispute, the interpretation of these guidelines made by the Government of Jammu & Kashmir shall be final. In all such matters, to the extent practicable, an opportunity shall be given to the affected stakeholders to be heard before the Government takes any decision.
FINANCING OF SMALL HYDRO POWER PLANTS