India's power ministry insists hydro wing tried to ensure compliance with hydro policy

India's Ministry of Power has refuted the audit's allegations that its Hydro Wing overlooked the non-adherence of the national hydro policy by Arunachal Pradesh.

The policy requires states to allocate hydro sites to private developers through the memorandum of understanding for capacities up to 100 MW and through the competitive bidding process for all capacities above 100 MW.

But during the allotment of five hydro electric projects, namely -- Lower Siang HEP, Hirong HEP, Tato-II HEP, Siyom HEP and Naying HEP -- to private sector developers, the Government of Arunachal Pradesh had signed MOUs with private developers for execution of HEPs exceeding 100 MW, thereby violating the hydro policy guidelines.

In light of this, the power ministry has stated that the HMOP has made ample efforts to ensure compliance of the hydro policy and has addressed the legal, policy and administrative aspects of the matter.

In this regard, the MoP has repeatedly urged the state government to follow a transparent competitive bidding regime for allotment of projects greater than 100 MW.

Subsequently, it has requested the state to furnish case wise details on the method of allocation of the HEPs to private developers, list of bids received at pre-qualification stage and the final financial bids. However, the reply on these issues is still awaited.