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    Policy on cards for takeover of stalled private hydro projects

    Synopsis

    The central government is considering preparing a policy to facilitate CPSUs to take over such projects, most of which have not yet been referred to insolvency courts by lenders.

    power consumption
    The government is considering a policy for takeover of stalled private hydro projects by PSUs like NTPC, NHPC and SJVN, amid the country's commitment to meet 50% of its energy requirement through non-fossil sources.

    A large number of hydroelectric projects awarded to private companies, particularly in the north eastern region, have been stalled due to various challenges. According to estimates, 90% of the 60 GW projects awarded to various private and central PSUs (CPSUs) are yet to be developed.

    The central government is considering preparing a policy to facilitate CPSUs to take over such projects, most of which have not yet been referred to insolvency courts by lenders. State governments that have awarded the projects are contemplating terminating the contracts with private companies, which may lead to long litigations, a senior government official said.

    As per the proposal, hydel projects which are at initial stages of development will be considered for takeover by CPSUs. There are at least 10 GW projects, which fit this criteria. The companies will submit the project valuation reports and takeover proposals to a committee under the Union power ministry, he said.

    India has recently committed to bring its non-fossil energy capacity to 500 GW by 2030 and bring its economy's carbon intensity down to 45%.

    Power minister R K Singh had last month said the country will exceed its target of 500 GW renewable energy capacity by 2030, but needs hydro power as a balancing source for grid stability as wind and solar power supply is intermittent.



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