Licensing policy for small hydro power plant

Presented By:

Raj Kumar Bairwa M-Tech (AHES)

IIT Roorkee Enroll No.: 13512026

ALTERNATE HYDRO ENERGY CENTRE

INDIAN INSTITUTE OF TECHNOLOGY, ROORKEE

There are generally three methods to the site allotment-

Bidding process

MoU method

Swiss model of defence

Site allotment/license

The project for which PFR/DPR isavailable shall be put on acompetitive bidding.The project shall be advertised

widely to seek bids from privateentrepreneurs desirous for settingup SHP.

Bidding process

Application in response to theadvertisement should be accompaniedby a non refundable amount fixed bySG.

All bidders shall be subject toprequalification.

Contd…

All prequalified bidders will be provided withthe PFR/DPRs.

Bids shall be invited for premium payableupfront.

Upfront will be per MW for each project,subjected to a minimum threshold premium.If the bid received beneath the threshold…

Contd…

… will be rejected.

Project will be allotted to the bidders makingthe highest bid.

The successful bidder shall be required todeposit the premium amount within areasonable period of receiving intimationregarding his successful bid.

Contd…

If more than one bidder bids theidentical premium per MW for any site, agradation list based on pre-qualificationcriterion shall be the basis for allotment.

In case there is no bid for two times, thesite is allotted to govt. agency.

Contd…

The project for which PFR/DPR are notavailable shall be allotted to the pre-qualifiedbidders.

The project shall be advertised in order toseek bids. Application in response to theadvertisement…

Contd…

…should be accompanied by a non refundableamount fixed by SG.

All bidders shall be subject to pre-qualification.

The merit list of the bidders shall be preparedaccording to the pre-qualification criterionand project allotted to the bidders.

Contd…

Any feasible SHP potential site identified bythe IPPs/User society and proposed to SG forallotment along with self prepared verifiablefeasible PFR/DPR-

Contd…

The application fee and bid amount shall be paid.

These projects shall be allotted as first cum basis.

Contd…

Any interested developer may give their offerto SG through the state nodal agency.

The SG will give project-wise consent forpreparation of PFR through the state nodalagency to the developer.

MoU method of allotment

The developer shall submit PFR to the statenodal agency.

Based on such PFR,SG will decide to giveconsent for detailed survey and investigationand DPR preparation.

Contd…

The developer shall submit the DPR to thestate nodal agency and the approval forproject implementation would be given bystate nodal agency, after examining the DPR;if acceptable.

Contd…

A formal Memorandum of Understanding/ Agreement will be executed between the developer and SG for implementation of the project.

Contd…

This method is generally preferred where there is very less or no competition.

Contd…

It is applied where total uncertainty of technology, tariff etc.

In this model an opportunity is given to first bidder to defend his bid.

Swiss model of defense

Period of licence/ allotment varies from state to state depending upon the state policy.

For example-in Kerala it is for 20 years; in J&K it is for 40

years

Period of Licence/Allotment

The project may be on Build, Own, Operate &Transfer (BOOT) mode.

May be on Build, Operate, Transfer (BOT)mode.

May be on Build, Operate, Lease, Transfer(BOLT) mode.

Ownership mode

May be on Lease, Rehabilitate, Operate,Transfer (LROT) mode.

In these modes, after specified period theentire project, including its assets related towater structures and power generation, shallbe transferred to the state government, freeof cost.

Contd…

It may be on Build, Own, Operate (BOO) mode.

Contd…

Free transfer of shares will be permitted in the companies allotted projects as per the procedure laid down by SG.

Transfer of allotment

IPP shall prepare and submit the DPR and all other information and make the necessary applications for obtaining the statutory clearances and approvals of the State & Central government.

The IPP shall achieve the financial closure within 12 months from the date of receipt of all statutory approvals and clearances given by the states and central Governments.

Financial closure would imply firm commitments for the financing the entire project.

Financial closure

The failure to get those will result inautomatic cancellation of the allotment of thesite, and forfeiture of upfront premiumamounts.

No compensation would be payable to IPP’s insuch instance.

Contd…

The IPP may surrender the allotment back to SG if on completion of the DPR, within the stipulated time frame, it has bounds to establish that the project is not techno-economically viable.

Surrender of allotment

1. Government of Assam, policy for small hydro power development.2. Hydro electric power policy, Arunachal Pradesh3. Small hydro power policy, Govt. of Madhya Pradesh, New & Renewable

Energy Department.4. Policy guidelines for development of small hydro power projects upto 25

MW capacity in U.P.5. Policy on hydropower development by Private Sector, in the state of

Uttaranchal.6. Teachers manual, Hydropower plants, for engineering diploma program

elective course, by AHEC, IIT Roorkee.7. Electricity act-2003.8. Policy on hydro power development in uttaranchal

References

Thank you