Lok Sabha Question No. 2009 (UNSTARRED), answered on 2016-05-05
Subject: Stalled Power Projects
Ministry: POWER
Asked by: BHEEMRAO BASWANTHRAO PATIL, DALPAT SINGH PARASTE, RANGASWAMY DHRUVANARAYANA

## GOVERNMENT OF INDIA

## MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.2009 TO BE ANSWERED ON 05.05.2016

## STALLED POWER PROJECTS

2009.  SHRI BHEEMRAO B. PATIL:

SHRI DALPAT SINGH PARASTE: SHRI R. DHRUVA NARAYANA:

Will the Minister of POWER be pleased to state:

- (a) the capacity addition so far to the electricity supply during the 12th Plan period as a percentage of the proposed addition;
- (b) the  details  of  the  hydroelectric  power  projects  which  are  stalled  and investments which have been held up due to these projects, State/UT-wise;
- (c) the  impact  of  the  stalled  power  projects  on  the  Government's  plan  to ensure  24X7  electricity  supply  across  the  country  and  the  time  period  within which this could be achieved; and
- (d) the  steps  being  taken  by  the  Government  to  rejuvenate  the  hydropower sector in the country?

## A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, COAL AND NEW & RENEWABLE ENERGY

( SHRI  PIYUSH GOYAL )

- (a) : A generation capacity addition target of 88,537 MW excluding 30,000 MW of Renewable Energy Sources (RES), was fixed for 12 th  Five Year Plan.  During first  four  years  of  the  12 th     Plan,  i.e.  during  2012-13  to  2015-16,  a  capacity  of 84,990.7  MW  has  been  achieved  from  Conventional  Energy  Sources,  which  is 95.99% of the target fixed for the entire Plan period.
- (b) : Details  of  stalled  hydroelectric  power  projects  and  investments therein are given at Annex.
- (c) : Ministry of Power have taken a joint initiative with State Governments  for  preparation  of  State  specific  documents  for  providing  24X7 Power For All. In these documents, an assessment of energy required to provide 24X7  Power  For  All  for  connected  and  unconnected  consumers,  adequacy  of power  to  the  State  from  various  generating  sources,  inter-state  transmission system,  intra-state  transmission  system  and  distribution  to  ensure  24X7  power supply has been made. As more than 95% of the capacity addition target for the 12 th  Five Year Plan has already been achieved during first four years of the plan, therefore,  the  stalled  hydro  projects,  which  constitute  only  4341  MW  of  the generation capacity, are not expected to impact the Government's plan to ensure 24X7 electricity supply across the country in a significant way.

- (d) : The  major  steps  taken  by  the  Government    to  rejuvenate  the hydropower sector in the country are as under:-
- i) National Electricity Policy, 2005 placed maximum  emphasis  on  full development of the feasible hydro potential in the country.
- ii) Hydro Power Policy- 2008 , inter-alia , consists of the following measures:-
-  Transparent selection criteria for awarding sites to private developers.
-  Enables  developer  to  recover  his  additional  costs  through  merchant sale of upto a maximum of 40% of the saleable energy. 5% reduction for  a  delay  of  every  six  months.  Balance  long  term  Power  Purchase Agreements (PPAs).
-  For 10 years from the Commercial Operation Date (COD), developer to provide  100  units  of  electricity  per  month  to  each  Project  Affected Family, in cash or kind or a combination of both.
-  Additional 1% free power from the project (over and above 12% free power  earmarked  for  the  host  State)  for  a  Local  Area  Development Fund,  as  a  regular  revenue  stream  for  welfare  schemes,  creation  of additional infrastructure and common facilities.
-  The  State  Governments  would  also  contribute  a  matching  1%  from their share of 12% free power.
- iii) National  Rehabilitation  &  Resettlement  Policy  2007  was  notified  to address  the  need  to  provide  succor  to  the  Project  Affected  Families (PAFs) and the Administration for Resettlement & Rehabilitation to enable timely completion of project with a sense of definiteness as regards costs and adequate attention to the needs of the displaced persons.
- iv) Right to Fair Compensation  and  Transparency  in  Land  Acquisition, Rehabilitation and Resettlement Act, 2013 has been notified by the Govt. of  India  on  27.09.2013  which  have  more  participation  of  local  people  in terms of Land acquisition and Rehabilitation & Resettlement.
- v) The Amendments in Tariff Policy have been notified on 28.01.2016. One of the  main  objectives  of  the  Policy  is  to  promote  Hydroelectric  Power generation  including Pumped Storage Projects (PSP) to provide adequate peaking  reserves,  reliable  grid  operation  and  integration  of  variable Renewable Energy Sources. The policy consists of the following provisions to boost the Hydroelectric Power sector:
-  Hydropower excluded from Renewable Purchase Obligation (RPO) (8% of the total consumption excluding Hydro power).
-  Hydro projects through long term PPAs are exempted from competitive bidding till August, 2022.
-  Enabling provision for suitable regulatory framework incentivizing Hydroelectric Projects for using long term financial instruments - in order to reduce tariff burden in the initial years.
-  Developer  shall  have  the  option  of  charging  lower  rate  of  depreciation vis-à-vis the ceiling determined by Central Electricity Regulatory Commission (CERC).

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ANNEX ANNEX  REFERRED  TO  IN  REPLY  TO  PART  (b)  OF  UNSTARRED  QUESTION  NO. 2009 TO BE ANSWERED IN THE LOK SABHA ON 05.05.2016.

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STALLED HYDRO ELECTRIC PROJECTS

| Sl. No.        | State                     | Name of Project/ Executing Agency / Capacity (MW)                 | Latest Anticipated Cost (Rs. Crores)   | Expenditure (Up to)   |
|----------------|---------------------------|-------------------------------------------------------------------|----------------------------------------|-----------------------|
| CENTRAL SECTOR | CENTRAL SECTOR            | CENTRAL SECTOR                                                    | CENTRAL SECTOR                         | CENTRAL SECTOR        |
| 1              | Uttarakhand               | Lata Tapovan, NTPC 3x57=171 MW                                    | 1,527                                  | 143 (Jan-16)          |
| 2              | Arunachal Pradesh / Assam | Subansiri Lower NHPC 8x250=2000 MW                                | 18,063.89                              | 8,357.23 (Mar-16)     |
| PRIVATE SECTOR | PRIVATE SECTOR            | PRIVATE SECTOR                                                    | PRIVATE SECTOR                         | PRIVATE SECTOR        |
| 3              | M. P.                     | Maheshwar SMHPCL 10x40= 400 MW                                    | 6,793                                  | 3,135                 |
| 4              | Sikkim                    | Teesta VI Lanco Teesta Hydro Power Ltd. 4x125=500 MW              | 5,400                                  | 3,144.00 (Jun-15)     |
| 5              | Sikkim                    | Rangit-IV Jal Power Corp. Ltd. (JPCL) 3x40= 120 MW                | 1,627.83                               | 804.37 (Aug-15)       |
| 6              | Sikkim                    | Panan Himagiri Hydro Energy Pvt Ltd. 4x75 = 300 MW                | 1,833.05                               | 153                   |
| 7              | J&K                       | Ratle GVK Ratle Hydro Electric Project Pvt. Ltd. 4x205+1x30=850MW | 5,517.02                               | 373.80 (03/2016)      |

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