Low tariffs may hit HP's power units

High infrastructure costs and low power tariff for micro and mini hydel projects (1-5 mw) could cast aspersions on large number of such projects that are estimated to generate 850 mw in Himachal Pradesh,reports Parshant Krar in Chandigarh.

CHANDIGARH: High infrastructure costs and low power tariff for micro and mini hydel projects (1-5 mw) could cast aspersions on large number of such projects that are estimated to generate 850 mw in Himachal Pradesh,reports Parshant Krar in Chandigarh.

Notwithstanding the initial euphoria, as over 1,800 applicants poured for 165 projects in the previous year, a large number of such projects (around 250 such projects identified) may not see light of day due to high infrastructure costs.

The project cost for setting up these units could go beyond Rs 9 crore per mw as these sites are located in remote areas,a private investor said. Many investors are also finding the land acquisition costs to be very high.
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