Cabinet decides to involve pvt sector in hydel projects

NEW DELHI: With a view to encourage the private sector to develop hydroelectric projects, the Centre on Thursday decided to modify the Hydro Power Policy.

A meeting of the Union Cabinet chaired by Prime Minister Manmohan Singh gave its approval to modification to the policy to provide an impetus to the development of hydroelectric projects by the private sector in a big way.

Briefing reporters, Information and Broadcasting Minister P R Dasmunsi said the policy would benefit projects, especially in the North-eastern region and in the Himalayan states.

Though there is tremendous potential for tapping hydel power by involving the private sector, there is lack of incentives in this regard, he said.

The arrangements would ensure that the initiative for allocation of projects remain with the state governments and scrutiny by the Regulator and Central Electricity Authority would ensure that projects are designed and built in the most optimal and economic manner.

The interest of the consumers would also be adequately protected, he added.