Government Seeks Stakeholder Input on National Small Hydropower Strategy
Shimla – In a bid to bolster the small hydropower sector, Himachal Pradesh is taking steps towards enhancing development in this area. A special consultation meeting was held today to discuss the Draft National Small Hydropower Policy (NSHP) 2024, organized by the Ministry of New and Renewable Energy (MNRE). The meeting aimed to gather input from key stakeholders, including Independent Power Producers (IPPs), financial institutions, and governmental representatives.
Chaired by Bhupinder S. Bhalla, Secretary of the MNRE, alongside Chief Secretary Prabodh Saxena, the workshop focused on addressing existing challenges and exploring opportunities for small hydropower projects ranging from 5 MW to 25 MW. Bhalla emphasized the government’s commitment to achieving 500 GW of installed electric capacity from non-fossil sources by 2030, highlighting the crucial role that small hydropower can play in this ambitious target.
During the discussions, Saxena pointed out that Himachal Pradesh has made remarkable advancements in hydropower generation, with an identified potential of 3,850 MW and 880 small hydropower projects (SHPs) allotted, contributing significantly to meeting local energy demands. He advocated for extending exemptions from catchment area treatment plans for SHPs up to 25 MW to further stimulate growth in this sector.
The Cabinet’s proposals also included considering the inclusion of SHPs under the Priority Sector Lending (PSL) guidelines to facilitate financing from banks and financial institutions, which have historically been hesitant to invest in hydropower projects. Saxena reiterated the need for reinstating Central Financial Assistance (CFA) to alleviate financial burdens on developers and expedite project completions.
The workshop also addressed concerns regarding delays in obtaining necessary forest clearances, which have hindered project timelines. Stakeholders urged the MNRE to engage with the Ministry of Environment and Forests to streamline these processes, ensuring a more efficient pathway for project implementation.
Prof. Arun Kumar from IIT Roorkee provided expert insights during the meeting, discussing various technical and financial challenges faced by stakeholders. He encouraged participants to share any additional suggestions or technical issues with the MNRE to enhance the Draft Small Hydro Policy.
