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Tariff Regulation Proposed for 2019-2024 Likely to Make Hydro Projects More Attractive Emphasizing on Viability

<p><span style="font-size:9.0pt">Hydel Projects in recent past has spun to least attractive due to non-competitive tariff structure and issues involved in construction of project at such high altitude under unfavourable conditions. And is mirrored in share of Hydel Generation, as it stands stalled at 14%. The multi-year tariff regulation by CERC is expected to boost developments in sector and attract more Investment by making project more viable. The said Regulation will also provide a major relief to projects facing huge time and cost overruns.</span></p> <p><span style="font-size:9pt">Extension of useful life to 50 years from existing 35 Years and Loan repayment to 18-20 years from existing 10-12 years is poised to reduce tariff of Hydel Power. Discoms would also be benefited in buying power from Hydel at market competitive rates. Subsequently more of identified natural resources would be exploited to harness hydel power generation from Northern &amp; North-Eastern States of India.</span></p>