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Arunachal Pradesh Hydro Policy - 2008

HIGHLIGHTS

Nodal Agency	Arunachal Pradesh Energy Development Agency
Applicable Technologies	Hydro-power technologies (up to 25MW)
Targets under Policy	Not specified
Incentive by State Govt.	The State Government shall facilitate in obtaining subsidies, tax concession etc. as may be available from the Central Government 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.
Eligibility Conditions	Companies with registered offices in Arunachal Pradesh, partnership concerns/sole proprietors/NGOs/co-operative societies/joint venture concerns or consortium of companies where the leading partner is a bonafide ‘Arunachalee’..
Project Allocation	By Government of Arunachal Pradesh on BOOT (Build, Own Operate and Transfer) basis for a period of 50 years.

OTHER PROVISIONS

Suitable intra-state open access provisions are available.

Category of hydro power projects

Category I: Projects with installed capacities above 1 MW and upto 25 MW will be allowed to operate in both grid and isolation mode, provided they have all components and features of conventional hydro power projects providing grid quality power.

Category II: Projects with installed capacities over 100 kW and up to 1000 kW should be designed for stand-alone mode for providing dedicated power to village/habitat /locality/cluster of villages, with or without grid connectivity. Power supply to consumers to be provided either at High Voltage or Low Voltage , as needed.

Category III: Projects with installed capacities of up to 100 kW shall be designed for stand-alone mode dedicated to village/habitat, directly distributing power to the households without high tension systems.

Evacuation arrangement

Developer shall take responsibility for constructing/extending required transmission network from project to point of sale specified in the Letter of Comfort on Transmission (LCT).

Pre-condition for Qualification

Prospective developers shall furnish, at the time of application for allotment of projects,a legal undertaking to engage the following technical personnel, either as permanent employees or partners in the organization.

The selected developer shall deposit the prescribed processing fee and minimum base-line upfront premium to the state government. The upfront premium is a non-refundable, one-time commitment fee, which shall not have any bearing on the project account.1.

Category	Power Project	Personnel/Minimum Experience in power projects	Nos	Processing Fee per project	Premium Payment per MW
I	1 MW – 5MW	Civil Eng. (Degree)/3 yrs Elect. Eng.(Degree)/3yrs	1 1	Rs. 25,000	Rs. 10,000
	>5 MW – 10 MW	Civil Eng. (Degree) /5 yrs Elect. Eng.(Degree)/5yrs Civil Eng. (Diploma)/3yrs	1 1 1	Rs. 35,000	Rs. 15,000
	>10 MW – 25 MW	Civil Eng. (Degree) /5 yrs Elect. Eng.(Degree)/5yrs Civil Eng. (Diploma)/5yrs Elect. Eng. (Dip.)/3Yrs	1 1 1 1	Rs. 50,000	Rs. 20,000
II	>100 kW – 1000kW	Civil Eng. (Degree)/3 yrs Elect. Eng. (Dip.)/3yrs	1 1	Rs. 15,000	Nil
III	>100 kW	Civil Eng./Elect. Eng. (Diploma)/3yrs		Rs.10,000	Nil

Engagement of additional technical staff, including ITI certificate holders, by the developers in addition to the minimum criteria, is preferred. Allocation of the project will depend on the financial soundness and past experience of the developer in the field of power and electricity management/project planning, designing and implementation of civil, electrical, and industrial projects.

Incentives by State Government

The state govt. shall facilitate obtaining subsidies, tax concession etc., available from the central government for SHP development.
The state govt. 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 govt. under this policy for projects up to 5 MW capacity.

All projects under this policy, shall, on timely completion, be granted a moratorium of free power as given below. The moratorium period will be counted from the scheduled Commercial Operation Date (COD).

Category of Hydro Project

Moratorium Period from scheduled COD

Rate of free power after Moratorium period up to 50th yr

>10 MW-25 MW

Indigenous Developers
Non-indigenous Dev.

One year
One year

5%
10%

>5 MW to 10 MW

Indigenous Developers
Non-indigenous Dev.

Two years
Two Years

2.5%
8%

>1 MW to 5MW

Indigenous Developers
Non-indigenous Dev.

Three years
Three years

NIL
5%

Up to1000 kW

Indigenous Developers
Non-indigenous Dev.

NIL
NIL

NIL
2.5%

(Amended on 13th Oct. 2008)

Tax/duty exemptions

Developers may avail tax concessions given under Central Government policies

Provision for Policy Review

Not available

Links

http://www.arunachalpradesh.nic.in/small-hydro-power-policy.html

References

http://www.arunachalpradesh.nic.in/pdf/Small_Hydro_Power_Policy.pdf

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