“Expression of Interest” for setting up small & medium and large hydro power projects in Bihar by private entrepreneurs/investors.

 

 

Sirs,


           
Bihar, though essentially is made of plains, its territory has three hilly ranges and seventeen river basins which may offer significant opportunities for hydro power development but await detailed surveys to determine their full potential.

 

            The BHPC, the nodal agency for the development of hydro sector in Bihar,  through its limited resources, has been able to identify some sites in different parts of the State and these divided among medium, large and small scale in the following manner have been assessed to have a potential for additional capacity creation to the tune of 3756MW:-

 

·         Medium and large hydro schemes (with a capacity to generate more than 25 MW) – 3545 MW

·         Small hydro schemes (with a capacity to generate less than 25 MW) -211 MW.

 

The BHPC has set up a chain of small hydro projects (SHPs) with the assistance of the Government of Bihar (GoB),the National Bank for Agriculture & Rural Development (NABARD) and  Ministry of New Renewable Energy (MNRE) and  now is transitioning into medium and large hydro projects such as the Dagmara hydropower project (125 MW ) with the external assistance.

Details of these projects are available on our website: www.bshpcltd.com

 

The BHPC, however, is neither in a position to mobilize resources on its own to install new utilities on these identified sites nor to undertake studies at the required scale to cover all untapped river basins and hilly terrains for identification of new sites with potential for hydropower development. The BHPC has submitted a draft Hydro Power Policy to the State Government for approval which aims at attracting private investors to participate in Bihar’s hydropower development programme.

 

A copy of the draft Hydro Power Policy is enclosed for ready reference.

 

From perusal of the draft it would appear that the key objectives of the policy are as below:-

 

 

  • Power is a critical driver for socio-economic development. Efforts at accelerating the rate of economic growth in a globalized economy are dependent on the provision of adequate, reliable and quality power at competitive rates. The basic objective of the electricity industry would be to provide adequate power at economic cost, while ensuring reliable and quality supply.

 

  • Hydro power projects, once established, have a long and productive life span of over 40 years, and though characterized by relatively high initial costs, have substantially lower costs in terms of operations and on the environment in the long run, when compared to coal or natural gas based generation.

 

  • Exploitation of the entire hydro potential in the state can contribute significantly towards eliminating power shortage, particularly peaking shortages in the state, and this will of course provide an impetus for growth and development in Bihar. The GoB is very aware of the changing environment post the enactment of the Electricity Act 2003 and is committed to reforming its power sector and encourages private investment in all segments of the power sector, including that of hydro power generation.

 

·         The total estimated medium and large hydro power potential identified by BHPC, the nodal agency, untapped as on 31st December, 2008 is approximately 3,546MW, including pumped storage schemes. This untapped potential needs to be unlocked and developed at the earliest to meet the energy and peaking shortages of the state.

 

·         Given the significant hydro potential in the state and the need to aggressively tap this potential, leveraging the expertise of the private sector and the resources of the state has been deemed crucial. Though a number of mini and micro hydro generating capability have already been identified by the nodal agency and is being developed by it, this policy also aims to provide a framework and vision for the development of small hydro projects.

 

            The main objectives of this policy would be:

 

·                     To harness the hydro potential of the state to capitalize on it being an environment-friendly sustainable source of energy and to enhance its contribution to  socio-economic development, keeping in line with the overall objectives of the Electricity Act 2003, the National Electricity Policy and the National Tariff Policy.

 

·                     To supplement efforts in bridging the gap between demand and supply of power, and in improving the balance in the hydro-thermal generation-mix of the state;

 

·                     To attract private sector investment in Bihar’s power sector by providing an investor-friendly regime and framework specially in light of the huge constraints imposed by the limited financial resources of the state;

               

·                     To develop hydropower projects on a BOOT (Build-Own-Operate-Transfer) basis in an eco-friendly manner, causing minimum distress to affected people, ecology and environment by adopting suitable remedial/mitigating measures and industry best practices;

 

·                           To protect the ownership and water usage rights of the local people.

 

·                           To make the power sector self sufficient in terms of finances and provide an additional potential source of revenue in the form of free power in accordance with the amended National Tariff Policy and the reversion of the project back to the state Government free of cost after the end of the operating period; and

 

·                           To create direct and indirect employment opportunities especially in rural and backward areas.

 

The Electricity Act, 2003 stipulates that generating companies shall not be required to obtain any license to establish, operate and maintain generating stations. Hydro power developers shall, however, need the approval of the state Government or the Central Electricity Authority (as the case may be) while developing hydro-electric power projects.

 

The state Government may make an allotment for implementation in the private sector, to the eligible bidder, i.e. a company or a consortium of companies or a corporation, whether of domestic or foreign origin. The hydro-power projects for which this policy would be applicable could be broadly classified under two sub-categories, viz:

 

Category-I

Projects with installed capacity of more than 25 MW but less than the 100 MW 

Project Developer to be selected through the MoU route

Category-II

Projects with installed capacity of 100 MW. And above.

 

Project Developer to be selected through the International Competitive Bidding (ICB) route

 

Thus after outlining the basic nature of the draft hydro policy we would like to state that Bihar’s enthusiasm stems from a participatory philosophy which believes that the views of potential investors must be taken on board from day one of the proposed policy being put in place. Indeed, in Bihar we are absolutely willing to recognize the core interests of our investors and take cognizance of their views in policy formulation.

 

In fact we are looking at this hydro policy meet as the beginning of Bihar setting new standards in government-industry interaction that synergizes the interests of the people of Bihar with that of industry at a basic and early stage thereby allowing the seamless transition of complex and substantial projects from the board room to the green field.

 

It is with such a developmental chain in mind that the BHPC contemplates organising a conclave as soon as possible to engage in consultation with experts, bureaucrats, fellow investors and people’s representatives to sustain the developmental initiatives of the State.

           

The exact date will be finalized after receiving intimation from you about your convenience and willingness to participate in this hydro policy conclave. We shall also welcome your comments/suggestions in respect to the proposed hydro policy that you may choose to offer after a preliminary perusal of the same.

 

A communication in this respect, if received at our end by 20th December, 2010, will be helpful for us in organizing the proposed conclave in Jan, 2011. Any query in this regard may be addressed to -

Miss Shilpi Sharma,

Management Trainee - H.R,

Phone 0612- 22274002/0612-2228267 (Ext.-124),

Email: bshpcltd@gmail.com / bshpc@bih.nic.in,

Fax: 0612 – 2227692.

 

Awaiting an early response.

 

                                                            Yours faithfully,

 Encl: As above.

                                                                           L. P. Sinha

                                                             Managing Director

Draft Hydro Power Policy

 

Dainik Hindustan

13.10.10

HINDUSTAN TIMES, PATNA

Wednesday, September 01, 2010

 

 

Dainik Hindustan

23.08.2010

 

 

Dainik Hindustan

15.10.09

 

Dainik Hindustan

15.08.09

Dainik Hindustan

04.08.09

 

Dainik Jagran

04.08.09

 

Prabhat Khabar

04.08.09

Dainik Hindustan

04.08.09

Times of India

04.08.09

Times of India

03.08.09

Dainik Jagran

03.08.09

Dainik Hindustan

03.08.09

 

 Hindustan Times

08/07/2009

 

Dainik Hindustan

26/03/2009

 

Current

March 16-22, 2009

Dainik Hindustan

06/03/2009

Hindustan Times

06/03/2009

 

Dainik Jagran

06/03/2009

 

INDIAN EXPRESS

28.01.2009

 

Dainik Hindustan

2.1.2009

 

 

 

Dainik Hindustan

17.12.2008

Dainik Hindustan

17.12.2008

 

 

Dainik JAGRAN

16.12.2008

Dainik Hindustan

10.12.2008

 
 
 
 
 
 
 
BHPC's Contribution (Rs. 50 lacs) to CM's Relief  fund

 

Patna, September 22

The Bihar State Hydroelectric Power Corporation (BHPC) has donated a sum of Rs. 50 lacs to te Chief Minister's Relief Fund for the flood affected people in the Kosi  region.

 

A cheque of the amount was presented to the Chief Minster at his residence by the Managing Director of the BHPC, Sri L.P. Sinha in the presence of Sri Ramashrya Prasad Singh, Hon'ble Minister of Energy, Bihar and Sri Rajesh Gupta, IAS, Secretary, Department of Energy, Bihar.

 

 

 

Hindustan Times

18.09.2008

 

Power Line

August 2008

 
 

The Times of India

30.08.2008

Hindustan Times

30.08.2008

 

The Times of India, Patna-Ranchi National

Thursday, August, 14 2008

 

Press Release

 

Patna, dated 12 Aug’ 2008:

  

            M/s Tata Power Company Limited and M/s Patel Engineering Co. Ltd., both well known firms in the infrastructure sector, have shown interest in the Indrapuri Hydroelectric Power Project (450 MW) for which "Expression of Interest" was invited by the Bihar State Hydroelectric Power Corporation (BHPC).

 

            This project  has to be executed on "Built, own, Operate and Transfer" basis for a contracted period of 30 years.

 

            The Water Resources Department (WRD), Government of Bihar has authorised the BHPC to invite such Expression of Interest. It needs to be mentioned here that the Water Resources Department is one of the major stake holders in this project.

 

            The Indrapuri project, it may be further recalled, has been languishing since 1987 when the Government of Bihar submitted its detailed project report (DPR) to the Central Water Commission (CWC) in the wake of Bansagar Agreement signed in 1973.

 

            Indrapuri reservoir project envisages construction of a dam of 45 meter high across river Sone in Rohtas district of Bihar and the western Garhwa district of Jharkhand. The DPR of the power component the water released from the dam shall firm up to help existing Sone canal system down stream of barrage and Bihar will be able to utilize its share of water from Sone river as per Bansagar agreement of 1973. The composite DPR was submitted by WRD, Bihar in 1993 to CWC for which terms and conditions was prepared by BHPC.

 

Estimated cost:

 

            Irrigation Component                           :           Rs. 5.3 billion (INR)

            Power Component                               :           Rs. 5.8 billion (INR)

            Total                                                    :           Rs. 11.1 billion (INR)

                                                                                    (At 1996 price level)

 

            The BHPC is also making noticeable progress on the Dagmara project (126 MW) in the Kosi basin. The DPR for the project is in the final stage of preparation by M/s. WAPCOS, a Govt. of India undertaking. Mr. Nitish Kumar, Hon’ble Chief Minister of Bihar was apprised  with the progress at the Dagmara during his recent visit to Birpur.

 

 

 

Dainik Jagran

29.07.2008

Dainik Hindustan

29.07.2008

 

 

Patna, dated 17/ 06/ 2008

             During the current financial year as many as 15 small hydropower projects are likely to be commissioned which will add 15 MW to the existing 47 MW  capacity  of  generating  plants  of  the  Bihar  State  Hydroelectric Power  Corporation.

 

            Steps are also underway to execute Dagmara (126 MW) and Indrapuri Reservoir (450 MW) Project.

 

            Four sites in Kaimur  District  have been identified for installation of pumped storage schemes with a total potential of  2570 MW. One of these, Sinafdar (115x3 MW) is to be implemented by a Central Government Undertaking, the National Hydroelectric Power Corporation (NHPC) as proposed by the Union Ministry of Power (MoP). The State Government has consented to this proposal.

 

            Steps have been initiated to have remaining three projects viz Telharkund (4X100 MW), Panchgotia (3x75 MW) and Hathiada-Durgawati (8x200 MW) implemented by obtaining financial assistance from international funding agencies like the JBIC. In this connection, efforts are on to seek support of such agencies through the Department of Economic Affairs, Union Ministry of Finance.

 

            M/s J-Power/Electric Power Development Co. Ltd., Japan in the meantime has shown its interest in Hathiadah-Durgawati project (1600 MW). A five member team from J-Power/Electric Power Development Co. Ltd., Japan led by its Director Mr. Shingeru Kondo is schedule to visit the Hathiadah-Durgawati site from 17th June to 20th June, 2008 to assess its full potential and  techno-economic feasibility.

 

            Mr. Shingeru Kondo had earlier visited this site in January, 2008 and had expressed the view that the Hathiadah-Durgawati project would be more attractive than the Purulia Pumped Storage plant in West Bengal. It may be mentioned here that M/s J-Power were the consultants for the Purulia plant also.

 

 

Dainik Hindustan

12.06.2008

 

Dainik Jagran

12.06.2008

Dainik Hindustan

23.04.2008

                

 

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