Himachal Pradesh

Policy for Power Generation from Small Hydro Power Sources-up to 5MW

Last IREEED Review: 05 September 2013
Program Overview
State: Himachal Pradesh
Technology : Small Hydro Power
Nodal Agency : Himachal Pradesh Government Energy Development Agency (HIMURJA)
This Small Hydro Power Policy came into force in 2006 and was amended in January 2010. The main features of the policy is summarised here with. The eligible producer of SHP up to 2 MW is reserved for a Himachali and Cooperative Societies comprising Himachalis, preference is given for Himachalis even till 5MW. The Government of Himachal Pradesh would acquire land for permanent structures and land for other purposed would be leased out by Government at approved rates. Operative period of the projects under this policy is 40 years after which the projects would be handed over to the Government. Power generated will be sold to HP State Electricity Board preferentially and if the developer intends to sell the power to a third party he is free to do so at a higher cost. Wheeling charges for captive use is at 2% including losses and for sale and captive use of power outside HP, it would be 1% of the energy received. No water royalty up to 5 MW for 12 years, 12% for next 18 years and beyond at 18% for sale within the state. As far as incentives are concerned for new project upfront premium exempted for projects up to 2 MW
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