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Assam

Policy for Small Hydro Power Development

Last IREEED Review: 24 September 2013
Program Overview
State: Assam
Technology : Small Hydro Power
Date of Issue : 01 March 2007
 
Summary
The Governor of Assam has notified the small hydro power policy in 2007 for the development of hydro power projects in the state. The allotment of the project may be on the basis of competitive bidding and direct allotment to pre-qualified IPPs. Optimum requirement of land for implementation of a particular project shall be allotted/sold at a premium / lease. Nodal Agency shall monitor the progress of the work, including investment vis-a-vis the state of works regularly. The Independent Power Producer (IPP) /Users society can contract to sell power to any consumer within Assam, to local rural grids within Assam which are not connected to the grid of Assam State Electricity Board (ASEB)or of Successor Company to rural power distribution , to any consumer outside the state, or to the ASEB/Successor Company. Sales to the ASEB/Successor Company will be mutually negotiated. All sales will beapproved, as may be required, by the Assam Electricity Regulatory Commission (AERC). Wheeling charges for wheeling the generated energy to bulk purchaser/third party consumers inside or outside the State will be as determined by the Assam Electricity Regulatory Commission (AERC). No wheeling charges are applicable in cases of sales to the ASEB/Successor Company in case power is supplied directly to ASEB/DISCOMs. ASEB/Generation Company (GENCO) will determine the specifications of the evacuation facilities required, including the interconnection point and voltage. Developers can avail of the facility of banking of energy within fixed period spans of 6 months. For project up to 5 MW, there will be no royalty, provided entire energy generated is sold within the state of Assam and For above 5 MW, a royalty @Rs. 0.25 per unit of net energy generated will be paid to Government of Assam(GoA) by IPPs/Users society. It may be reviewed after 5 years. Apart from the above electricity duty would be levied. Major incentives would be in the form of exclusion of entry tax for all equipment and building materials for the project apart from all the financial incentives for small hydro power development notified by the Government of India.
 
 
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