Private sector responds to call for capacity addition
Uttaranchal seems on track in its power capacity addition drive, if the
encouraging progress seen on hydel projects is any indication.
Having emerged as a new state in November 2000 from the bifurcation of former
Uttar Pradesh, Uttaranchal state enjoyed a power-surplus situation till
recently. However, with brisk industrial growth in recent years inspired by a
liberal tax regime, the state now finds itself heading towards power deficiency.
The hilly state has hydropower potential of 20,236 mw according to estimates
made by Uttaranchal Jal Vidyut Nigam, the state-run power generation company. As
against this, only 1,407 mw is under operation.
The state government, in October 2002, announced its power policy encouraging
private sector participation in hydropower projects. Today, the hydropower
sector in Uttaranchal has attracted widespread private sector participation both
as IPP developers and as BOT operators. "Capacity addition by private sector
projects is expected to be 1,990 mw in the coming years," says Manoj Kesharwani,
a senior official with UJVNL. "Out of the 18 projects offered by UJVNL in all
for development through private sector participation (BOT route), 15 have
already been awarded resulting in a success rate of 83 per cent so far," he
adds. However, by the end of the 11th plan period (March 2012), only small
hydropower projects are expected to see fruition, resulting in a capacity
addition of 789 mw through private sector participation.
UJVNL currently manages 31 power stations (nine of which are large plants of 25
mw or above) with aggregate capacity 1,127 mw. By the end of the 11th plan,
UJVNL expects new capacity of 2,232 mw to come on stream, through its ongoing
Uttaranchal is expected to have total hydropower capacity of 8,440 mw by March
2012, implying fresh capacity of a whopping 7,032 mw over the next six years.
The private sector would be a major driving force accounting for nearly 70 per
cent of this incremental capacity.
[01 May 2006]