Policy for stalled private hydro projects likely for takeover

The government is considering a policy that would allow PSUs like NTPC, NHPC, and SJVN to take over stalled private hydro projects, as part of the country's commitment to meet 50% of its energy needs from non-fossil sources. Due to various challenges, a large number of hydroelectric projects awarded to private companies, particularly in the northeastern region, have stalled. 90% of the 60 GW projects awarded to various private and central PSUs or CPSUs have yet to be developed, according to estimates. A senior government official said that the central government is considering drafting legislation to make it easier for CPSUs to take over such projects, the majority of which have yet to be referred to insolvency courts by lenders. State governments that have awarded the projects are considering terminating the contracts with private companies, which could result in long litigations. Hydel projects in the early stages of development will be considered for takeover by CPSUs, according to the proposal. There are at least 10 GW projects that meet this requirement. A committee under the ministry of power will receive the project valuation reports and takeover proposals from the companies. India recently pledged to increase its non-fossil energy capacity to 500 GW by 2030 and reduce the carbon intensity of its economy to 45%. Last month, Power Minister R K Singh told the media that the country will surpass its goal of 500 GW of renewable energy capacity by 2030, but that the country will need hydropower as a balancing source for grid stability because wind and solar power supply is intermittent. Image Source