Uncertainty preventing investments in hydel projects: Goyal

New Delhi: Uncertainties in the hydro power sector are keeping investors away from hydel projects although the country has huge potential, Power Minister Piyush Goyal told Lok Sabha today. Many hydel power projects are facing hurdles, resulting in long delays and stoppage of works.[caption id=“attachment_1695749” align=“alignleft” width=“380”]  Union Power Minister Piyush Goyal. Image courtesy PIB[/caption] “There is uncertainty over hydro power projects… Investors are not ready to make investments,” said Goyal, who is also in charge of Coal and New and Renewable Energy Ministries. Even though existing hydel projects are generating electricity at cheaper rates, he said many new ones are stuck and cited the examples of Subansiri (Assam) and Teesta (Sikkim) plants, among others. “Different projects are stuck due to different reasons,” he said and cited politics, environmental issues and court rulings being among the various reasons. He assured that government would make efforts to start hydel projects once the “uncertainty” is over. At the end of January, installed hydro power generation capacity in the country stood at nearly 41,000 MW. Noting that the House needs to have a discussion on hydel projects in the country, Goyal said many regions including North East and Uttarakhand have significant hydro potential. To a query on Green Energy Corridor project, Goyal said synchronisation of renewable power under this programme is yet to start as implementation is at different stages. The project, being done with soft loan assistance from German lender KfW, would cover Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Maharashtra, Madhya Pradesh, Rajasthan, Tamil Nadu and Jammu and Kashmir. “Green Energy Corridor project will help in grid stability by way of evacuating renewable power from the generation points to load centres with creation of additional and adequate transmission capacity,” the Minister said. KfW would provide a concessional loan of €1 billion, over the next six years, to augment and strengthen power transmission infrastructure for evacuating renewable energy. Besides, Germany’s GIZ has agreed to provide technical assistance of €2 million for forecasting, balancing, market design and network management related to grid integration of renewable power. The minister also appreciated the Tamil Nadu government and former chief minister J Jayalalithaa, whom he addressed as ‘Amma’, for giving thrust to renewable energy in the state. PTI