Small Hydel Projects Policy

POLICY DIRECTIVES ON ALLOTMENTS OF SITES AND INCENTIVES TO SMALL HYDEL PROJECTS UPTO 10 MW.

   In order toattract investors towards production of clean and pollution-free energy based on smallhydel resource through a transparent policy for the award of sites having capacity up to10 MW. Government of Chhattisgarh hereby issues policy directives as under :-

  1. INVESTMENT IN SMALL HYDEL POWER PLANTS
       Small Hydel power plants (SHPs) will be generally installed by private investors. But, wherever necessary, the nodal agency i.e. Chhattisgarh Renewable Energy Development Agency (CREDA) can also install SHPs with it's own funds or through joint venture company formed by CREDA. Chhattisgarh State Electricity Board (CSEB) can also install SHPs as and when necessary.

  1. IDENTIFICATION OF SITES
       For any project Nodal Agency would get the pre-feasibility reports prepared and then offer site to the Developer. Projects can also be identified by Developer(s) on their own, provided they are not in conflict with the planned/alloted project of Government and irrigation/drinking water plan of State Govt., and may approach the Nodal Agency for allotment. Nodal Agency would get the permission/NOCs required from other department.
     

  2. APPLICATION AND PROCESSING FEE
       A non refundable application fee of Rs. 5/- per KW subject to a minimum of Rs. 10,000/- will be charged from each applicant entrepreneur enterprise. Applicant should submit two sets of pre-feasibility report based on scientifically collected and factual data obtained from recognized  sources along with processing fee @ Rs. 25/- per KW subject to a minimum of Rs. 25,000/- to be paid while applying for the project. Processing fee would be returned if the site is not alloted ao the applicant.
     

  3. ELIGIBILITY CONDITIONS AND BASIS OF ALLOTMENT
         Criteria for the award of sites by the Nodal Agency would be as follows :

    4.1  Applicant should be a citizen of India. In case the applicant is a company, the company must be registered in India.

    4.2  Applicant/Company should have previous experience and should be technically sound and economically viable unit.

    4.3  If the applicant/company shall be providing benefits of the plant to unelctrified villages and the scheme envisages wheeling for this purpose, preference shall be given to such applicant/company.

    4.4  In case of multiple response for a given site invited by CREDA, the award of site shall be done according to merit list prepared on the basis of criteria given above.

    4.5  In case of multiple response to sites selected by the applicants themselves, the allotment shall be on "first come first served" basis.
     

  4. WHEELING OF ELECTRICITY
       The entrepreneur can wheel electricity produced at the power plant to his unit or that of a third party or sister concern using the grid of the CSEB. Wheeling charge shall be fixed as per policy of CSEB. In case the purchaser unit is out side the state, wheeling charges shall be decided by the SEBs of two states.
     

  5. SALE OF EXCESS POWER TO CSEB
       CSEB shall mandatorily buy the excess power after actual captive consumption by the Entrepreneur or sale to third party/sister unit. The CSEB will buy this excess power @ Rs. 2.25 per unit. The Government may revise this rate from time to time.
     

  6. EXPENDITURE ON GRID INTERFACE / TRANSMISSION LINE
       The expenditure required for evacuation of power like grid interfacing equipment and transmission line shall be borne by the Entrepreneur if the transmission line is up to a distance of 2 km. For distances exceeding 2 km, the expenditure on laying of transmission lines shall be shared equally by the Entrepreneure & CSEB. However cost sharing by CSEB will be limited up to a max. distance of 5 km. Laying of the transmission line shall be done by CSEB.
     

  7. WATER ROYALTY
       Water royalty will be payable to Water Resources Department, Govt. of Chhattisgarh at rates prescribed by that department from time to time.
     

  8. ELECTRICITY DUTY
        No electricity duty shall be payable for five years from the date of commissioning the SHP installed as the NCE policy of the state announced vide its circular No. 38 dated 08.04.2002.
     

  9. ALLOTMENT OF LAND
        A ward of land shall be done by the district / division / state level committee / board constituted under the C.G. Industrial Investment Promotion Act 2002.
     

  10. TIME LIMIT FOR EXECUTION OF THE PROJECT
       
    11.1   The entrepreneur shall execute the project within the maximum period of 3 years from the date of approval of the detailed project report (DPR) submitted by him.

    11.2   Time limits for various stages of the project shall be set by CREDA at the time of approval of the DPR.

    11.3  CREDA may cancel the allotment of site in case of non execution of the project within time limits bet for various stages of the project or due to the failure to make the plant operational within a period of 3 years from the approval of the DPR. CREDA may increase the time limit(s) in case the delay is due to unavoidable circumstance.
     

  11. TRANSFER OF ALLOTMENT
        The allottee cannot transfer the site awarded to him. In case allottee is a company, the actual portion of the promoter equity shall remain non transferable. After commissioning of the project the system can be transferred only with the prior permission of Nodal Agency.
     

  12. INTER-DEPARTMENTAL CO-ORDINATION
        Inter-Departmental co-ordination shall be done by the district / divisional / state level committee / board constituted under the Chhattisgarh Industrial Investment Promotion Act 2002.
     

  13. The policy directives shall be in force for a period of 5 years.