Proposed Policy envisages promotion of hydropower as an attractive economic enterprise in JK: Shah Faesal
JAMMU, FEBRUARY 01: To promote hydropower generation as an attractive economic enterprise in the State, the Jammu and Kashmir State Power Development Corporation is in the process of formulating a comprehensive State Hydroelectric Policy.
According to Shah Faesal, Managing Director, JKSPDC, the proposed Hydroelectric Policy envisages promotion of hydropower as an attractive economic enterprise and facilitate private sector investment in this key sector.
He said the proposed Policy is aimed at encouraging entrepreneurs and newcomers in the potential energy sector. “In the proposed Policy, the pre-qualification process has been made simpler, single-window clearance system with PSGA time-frame has been introduced and wide range of incentives offered for the developers,” he said and added that under the new policy self-identified projects can be also allotted.
The other highlights of the Policy include rationalization of bid variables with defined project timelines and laying stress on environmental sustainability of the projects.
Among the incentives proposed for the developers, Shah Faesal, said percentage of free power has been reduced to 10%. “To facilitate financial viability of hydropower projects and make the projects investor-friendly, exemption on free power for first 10 years after COD proposed,” he said and added that in case the developer completes/commissions the project before the scheduled date as agreed in LoA, as an incentive, the differential period of generation is proposed to be exempted from free power.
The MD said that for state subject new comers/entrepreneurs, venturing in hydropower projects of upto 25 MW capacity, various relaxations in qualifications criteria has been provided. “Extra points have been proposed in the bid process for developers who are state subjects or are majority stakeholders in a Joint Venture,” he said and added that the Policy also provides for assured power purchase agreements and wider choices to developers to sell power within or outside the state.
In other features of the policy, Shah Faesal said, power evacuation arrangement has to be shared between developer and the state with priority to developer for dispatch into the grid.
“Besides, the construction material, machinery and equipment purchased for installation of hydro plants is proposed to be exempted from payment of Entry Tax and from payment of VAT subject to transition in GST regime,” he said and added that other tax exemptions which are given to the industries as per the J&K Industrial and Investment Promotion Policy 2016 are proposed to be applicable to the such power projects in the state which will be registered as an industrial unit.
He said the projects awarded under the New Policy are proposed to be exempted from the payment of water usage charges levied under the “J&K Water Resources Regulation & Management ACT”.
Urging people to come forward with their views on the proposed Hydropower Policy, Shah Faesal said the JKSPDC has already notified the draft J&K State Hydroelectric Projects Development Policy 2017 for the public perusal to seek their suggestions and views. He said the draft policy is available at www.jkspdc.nic.in and the stakeholders and general public can go through the policy and give their suggestions/views on the same.