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Hydro policy may link free power with project progress

The Centre is considering a new hydro power policy that may link free power from a project to the host states to the progress of the projects, offer annuity to project-affected families on early completion and devise other measures to lower project costs and tariffs.The draft proposal circulated among states for discussion seeks to address problems that have discouraged private investment and stagnated the capacity addition, said a government official. Time and cost overruns can raise tariffs from new hydro projects up to 𔝂 per unit but with these measures the government believes a 𔜾.5 per unit price may be possible.Hydro power is envisaged to play a vital role in the country meeting Nationally Determined Contribution (NDC) clim.....

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