Wooing project developers the HP way
By A Business Correspondent
Himachal Pradesh is going all out in its bid to woo investors in the power sector, more particularly for setting up hydro power plants in the state. Recently, it invited global bids for implementing nine identified projects in the state.
The projects are to be implemented on BOOM (build, own, operate and maintain) basis with the operation period pegged at 40 years. The project will revert to the government of Himachal Pradesh at the depreciated value after this period, unless its tenure is mutually extended.
No commitment has been made by the state for the purchase of power from projects exceeding 25 mw. Instead, the project developer has been given the option to dispose off the power, after allowing free power to the state. Disposal can be in any one of the following modes: either to make captive use for the industry to be set up in the state or to sell power outside the state or to make captive use or make third party sale outside the state with the approval of the concerned state.
In case of projects below 25 mw, the project developer in addition to the disposal routes mentioned above will also have the option to sell the power to the state electricity board. The SEB will purchase the power if it meets with the approval of the Regulatory Commission and also if the same is competitive. The state government has, however, restricted the project developer from making third party sales within the state of HP.
The government, in lieu of its surrendering the potential site, will be getting free energy from the project. The royalty in the shape of free power will be 12 per cent of the deliverable energy in case of projects of 5 mw to 25 mw for 40 years, from the commercial operation date.
In case of larger projects the royalty by way of free power will be 12 per cent for the first 12 years and 18 per cent for the next 28 years. The details about the projects on offer are given in the table.
The scope of the work will entail concept to commissioning and operation and include inter alia survey and investigations, identification of transmission system for evacuation of power and preparation of detailed project reports. The transmission system to be included in the DPRs for evacuation shall have to be decided in consultation with the HPSEB keeping in view the integrated system requirements.
The developer will be required to sign an MoU with the state government after paying Rs 1 crore per project by way of earnest money. The implementation agreement will be signed after establishing the techno-economic viability of the project. Bid forms can be had from the office of HPSEB Vidyut Bhavan on payment of Rs 5,000. Forms will be issued till September 14, 2001. A non-refundable processing fee of Rs 1 lakh will have to accompany each bid. Bids would be opened on the same day.