Power Ministry seeks enforcement of tariff rationalisation for hydropower projects

The Power Ministry has also notified the Hydropower Purchase Obligation as a separate entity within the Non-Solar Renewable Purchase Obligation

The Ministry of Power has written to the Central and State Electricity Regulatory Commissions to enforce tariff rationalisation for hydropower projects.

These measures are expected to bring down tariff for power generated from a new hydropower project, a Power Ministry notification said.

Tariff rationalisation measures include providing flexibility to the developers to determine tariff by back loading of tariff after increasing project life to 40 years. Increasing the debt repayment period to 18 years and introducing escalating tariff of 2 per cent are also included in these measures, the notification said.