Bihar to explore hydropower potential to meet supply gap

The Bihar government plans to explore its hydropower potential to bridge the power demand-supply gap in the state.

The plan will be implemented through state-owned agencies as well as active participation of the independent power producers.

In this regard, the Bihar Hydro Power Corporation has prepared a draft policy on development of hydropower during 2012.

The policy framework dictates that in case the capacity of the awarded project changes by 20%, the award conditions will not change. But if the deviation is more than 20%, the project developer will need to sign a fresh agreement with the state government.

Further, the projects will be developed on a build, own, operate and transfer model with a validity period of 40 years form the date of commissioning of the project.

The project developer will provide 12% free power to the state as royalty. Out of this total, 2% free power will be allocated to the areas surrounding the project site as social obligation.

The project developer will also develop the required distribution infrastructure for this power in consultation with the distribution company and nodal agency. In case of projects up to 3 MW, the quantum of free power will be 2% for social welfare.