Policy on climate change soon
Tribune News Service

Shimla, July 27
The government will soon come out with its own policy on climate
change in tune with the national action plan to take advantage of the
carbon credit facility under the Kyoto protocol.

This was state by Chief Minister P.K. Dhumal while presiding over the
inaugural HPPCL Power Development Lecture-2008 organised by the Power
Corporation. He said the draft policy had already been circulated and
was being discussed with stakeholders to give it a final shape. He
said the government was encouraging independent power producers
(IPPs).

He said the government had also decided to create a separate
directorate of energy to coordinate actions on issues related to
energy development, sale of power and monitoring the large number of
projects coming up in the private sector. It would implement a master
transmission plan for power evacuation for each river basin to ensure
that the power project developers did not face any problem on that
front.

He said the state had so far harnessed 6,370 MW hydropower, which was
nearly one-third of the total potential. He said the process was on
for adding 5,744 MW additional capacity by the end of the 11th plan
and another 5,616 MW during the 12th plan. He said the government had
devised strategies to involve all investors and the process would be
completed in a transparent manner. Identified hydropower sites would
be allocated to private-sector investors through competitive bidding.
The government had also decided to invite offers on the basis of free
power instead of upfront premium to augment financial resources of
the state.

He said the upfront premium for allotment of projects had been fixed
at Rs 20 lakh per MW and the bidders would have to offer free power
over and above the mandatory 12, 18 and 30 per cent share to the
state after 12, 18, 30 years of the setting up of the project,
respectively.

Chairman of the Central Electricity Authority stressed on the need to
harness hydropower expeditiously. He also spoke in favour "price
variation contracts".

Principal secretary (power) Ajay Mittal underlined the need to
improve hydropower share of in total power generation that had sipped
to 25 per cent as against the recommended 40 per cent. Managing
director of the Power Corporation Tarun Kapoor said his organisation
had set a target to have an installed generation capacity of 3,000 MW
by 2017 and 5,000 MW by 2022. It would include 1,000 MW of thermal
power, he added.