Govt set to fast-track clearances for hydel projects in border areas

  • 19/12/2013

  • Financial Express (New Delhi)

The government is set to give a big push to the development of hydro power plants in border areas by giving fast-track clearances to projects that are delayed for the last several years due to a complex approval mechanism. An empowered group of ministers (EGoM), headed by finance minister P Chidambaram, will meet soon to take stock of hydro power projects and associated infrastructure in border states, particularly Arunachal Pradesh. Sources said that the EGoM, reconstituted with the ministry of power being made the nodal ministry, will hold its meeting later this month or early next month. The Arunachal Pradesh government has allocated projects totalling 43,000 MW for development to companies such as state-owned generators NHPC and NTPC and private players like Jindal Power and Reliance Power. However, construction work has started on 3,000-MW capacity only while projects, with developers unable to start implementation work due to the difficulty of transporting equipment and machinery to project sites in the absence of a well-developed road network. According to Central Electricity Authority (CEA), the state has the potential to generate 49,126 MW per year from the 89 proposed hydroelectric projects (HEPs), but several of them are awaiting clearances from different authorities, including the CEA, Central Water Commission and the ministry of environment and forests. The delays, according to analysts, may benefit China, which is moving at a feverish pace to capture a bigger share of Bhahmaputra river with its enormous three gorges dam project and several other hydro projects along the border. Arunchal is currently producing only 405 MW. “Accessibility is a big issue in implementation of hydel projects in Arunachal Pradesh,” said JS Kawale who is looking after hydropower business of Jindal Steel and Power that has lined up investment of over R50,000 crore in the state’s hydropower sector. Two of JSPL’s mega-sized hydel projects projects, Attunli and Etalin on the Tangon river in the Dibang valley of Arunachal, are stuck due to inaccessibility problem. Heavy plant and machinery cannot be transported to the project sites until the connecting national highway is widened and strengthened. Border Road Organisation (BRO), an agency under the defence ministry, has to implement the project. However, the ministry of road and highways, which is supposed to provide funds for the project, is yet to clear the detailed project report. Pending that, construction work on the project cannot be started by BRO. “The infrastructure apparatus in our border areas needs to be strengthened if we have to counter our neighbour that is developing a host of road, rail and power projects in these strategic areas. Apart from delays in statutory clearances, lack of road connectivity is a big hurdle for power projects to get on stream,” a government official privy to the development told FE. It is expected that the EGoM may fasttrack clearances for Dibang 3,000-MW project and Tawang II 800-MW project in Arunachal besides several other small hydro projects on rivers Kameng, Subansiri, Dihang/Dibang, Siang and Lohit. It could also see whether Siang projects (upper, lower and middle with total capacity of about 13,000 MW) could be fast-tracked. Other projects such as Teesta IV project in Sikkim, Tipalmukh power project in Manipur and Mizoram, Silchar-Melriat 400 KV D/C line in Mizoram being implemented by PowerGrid, NHPC’s 66-MW Loktak hydro electric project, NTPC’s Kolodyne II project in Mizoram could also be looked. Besides, private sector projects — 680-MW Attunli Hydro Electric and 3,097-MW Etalin Hydro Electric — located in Arunachal Pradesh close to the China border (Tibet) may also be considered by the EGoM for fast-track clearance. Sources said that the power ministry had earlier forwarded a list of close to 20 projects in border areas that are languishing for want of clearances for the last six to seven years. Power minister Jyotiraditya Scindia has said in September that the government will make all efforts to fast-track hydel projects with a total generation capacity of 40,000 MW. “Most of the border projects face delays on account of environment and forestry clearance while a few need a nod from the defence ministry,” the official said. The EGoM is also expected to identify infrastructural bottlenecks such as road and rail connectivity that is crucial for the development of power projects. Several power projects closer to the border depend on support from BRO for getting connected with a road network. It is expected that the ministry of defence and BRO may be asked to give directions to their field units dealing with infra projects for expeditious submission of compliance report to the MoEF so that projects of strategic importance could get fast-track clearance from the ministry. The Centre has also secured commitment from Assam to tighten security so that plant, machinery and manpower could be mobilised by developers for their hydel projects in Arunachal without fear of attack from militants in the region. This comes after a NHPC staff was kidnapped by a militant outfit operating in the area. In the meantime, a tripartite agreement involving Arunachal Pradesh, Assam and the Centre has been mooted with the aim of improving law and order situation in the region.