Himachal to allot power projects on free supply amountJuly 27th, 2008 - 7:10 pm ICT by IANS
Shimla, July 27 (IANS) The Himachal Pradesh government will allot power projects to those bidders who offer more free supply to the state, instead of seeking bids on an upfront premium basis, Chief Minister Prem Kumar Dhumal announced here Sunday. The move is aimed at generating more financial resources and speeding up allotment of hydro-projects, Dhumal said at a seminar organised by Himachal Pradesh Power Corp Ltd.
He said under the new policy, upfront premium for project allotment had been fixed at Rs.2 million per megawatt, and the bidder had to offer the state free power above the mandatory 12 percent, 18 percent and 30 percent share after 12, 18 and 30 years of project implementation, respectively.
“The new policy would not only augment the state’s financial resources but also speed up allotment process, besides reducing litigation,” Dhumal said.
The chief minister said Himachal had harnessed 6,370 megawatt of hydro-power, nearly one-third of its potential, and that his government was in the process of adding 5,744 megawatt capacity by the end of the 11th Plan.