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Madhya Pradesh

Policy for implementation of Small Hydel-Power based electricity projects in Madhya Pradesh, 2011

Last IREEED Review: 19 September 2013
Program Overview
State: Madhya Pradesh
Technology : Small Hydro Power
Date of Issue : 03 November 2011
Nodal Agency : Madhya Pradesh Urja Vikash Nigam Limited (MPUVNL)
 
Summary
Madhya Pradesh Government has declared Madhya Pradesh small hydro power policy 2011 on November 3, 2011. The objective of the policy is to create favourable environment for promoting small hydel power generation with private sector participation. Power generated by the small hydro power generators covered under this policy can be used for captive usage and for sale of power to Distribution Company, third party consumers within the State and Power Trading Company of the State. The small hydro power projects shall be relaxed from Energy cess and Electricity Duty for 10 Years period. Projects implemented under this policy shall receive the status of industry and shall be eligible for all the incentives provided under "Industrial Promotion Policy" of the State government as amended from time to time. No water rates shall be payable for water consumption by small hydel power projects when there is no Consumptive use of water. If a developer intends to generate and distribute electricity in a rural area as par the State Govt notification, developer shall not require any license for distribution of electricity in such designated rural areas, but shall be bound to comply with the norms prescribed by the Central Electricity Authority under Section 53 of Electricity Act, 2003. Banking is allowed for of 100 % of energy in each financial year at the rate of 2.0 % of the banked energy as banking fees to the concerned State Distribution Company/State Power Trading Company
 
 
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