The Jammu and Kashmir Cabinet on Thursday approved a new hydroelectric policy under which no IPP will be awarded to more than three projects or projects aggregating over 200 MWs, whichever is higher.
The projects shall be offered for a concession period of 35 years after which these shall be transferred to J&K State Power Development Corporation (JKSPDC) on a payment of terminal value without any encumbrance. Also, the new policy to be applicable to the projects of estimated installed capacity of two to 100 MWs envisages preference to the state subjects or permanent residents of J&K for the projects up to 10 MWs. Chief minister Omar Abdullah while briefing reporters on the salient features of the new policy said, “It would open vistas for launch of various hydroelectric projects in the state under IPP mode.” He said the JKSPDC will be the nodal agency of the state government under the policy while projects up to two MWs will be handled by the science and technology department. “Under the new policy no IPP will be awarded more than three projects or projects aggregating over 200 MWs whichever is the higher. The projects shall be offered for concession period of 35 years after which these shall be transferred to JKSPDC on payment of terminal value without any encumbrance,” he added.
The chief minister said that the successful bidders would be required to pay an upfront premium not less than `4 lakhs per MW for 2 to 25 MWs projects, `6 lakhs per MW for projects above 25 to 50 MWs and not less than `8 lakhs per MW for projects of above 50 to 100 MWs. “Under the new policy the state would get 15 per cent free power throughout the concession period apart from one per cent for Local Area Development Fund (LADF) besides the procurement right to the quantum not less than 30 per cent after netting of free power and LADF,” he said.