New Hydro Policy to benefit affected people

New Delhi: Union Power Minister, Shri Sushilkumar Shinde has said that the New Hydro Policy approved by the Cabinet on 3rd January, 2008 is to create a level playing field for private and public hydro power producers. Addressing a Press Conference in New Delhi today he said that the new policy will also benefit the project affected persons. Following are the highlights of the policy:

1. In order to encourage private producers to undertake Hydro projects in difficult and remote areas, exemption from tariff based competitive bidding which is currently available only to Public Sector Undertakings upto January 2011, is now also available to private hydro projects.

2. The developer will now have the facility of merchant sale of upto 40% of the saleable energy in hydro projects.

3. An additional 1% free power over and above 12% will be earmarked for a Local Area Development Fund aimed at providing a regular stream of revenue for income generation, infrastructure creation and welfare schemes in the affected areas.

4. Each project affected family (PAF) will get 100 units of electricity every month for a period of 10 years free of charge.

5. Project authorities will construct houses at resettled sites for project affected persons.

6. At every project site an industrial training institute (ITI) will be set up six months before the beginning of the project work in order to train project affected people to undertake skilled and semi-skilled jobs. Project affected persons will be provided jobs in the project.