Arunachal Pradesh

Small Hydro Power Policy, 2007

Last IREEED Review: 02/09/2013
Program Overview
State: Arunachal Pradesh
Technology : Small Hydro Power
Date of Issue : 24/01/2008
Nodal Agency : Arunachal Pradesh Energy Development Agency (APEDA), Government of Arunachal Pradesh
This policy came into force on January 24, 2008. This policy envisages private participation in development of small hydro projects with certain attractive incentives. This policy also envisages for formulation and notification of an Action Plan for Small Hydro Power Generation. As per this policy the Government of Arunachal Pradesh would allocate projects to the eligible applicant for development on BOOT (Build, Own and Operate and Transfer) basis for a period of 50 (fifty) years. State Government would select the most eligible developer for the development of small hydro power project. The developer/user agency shall strictly comply with the statutory regulations of the Central Government/CERC and the State Government/SERC while implementing the project. Sale of power can be made through IPP category under a contract with the state government through a PPA signed within 6 months after signing of Memorandum of Association (MoA). The State Transmission Utility (STU) and the prospective developer shall enter into a proper understanding/Agreement about Power Evacuation System and open excess facility/availability before the developer takes final investment decision. The existing transmission system or the systems built for the purpose and other allied facilities will be made available to all developers for Open Access and wheeling of power. On all projects governed by this policy there shall be a moratorium of free power as an incentive for timely completion. Incentives: The State Government shall facilitate in obtaining subsidies, tax concession etc. as may be available from the Central Government for development of SHP; The State Government shall allow to the extent of 50% share of Carbon Credit benefit as may be available from Carbon Trading under CDM; Indigenous tribal entrepreneurs shall be exempted from supplying free power to the State Government under this policy for projects up to 5 MW capacity.
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