We're looking at ways to reduce hydro power generation costs: Goyal
The government is considering "several ideas" to reduce the cost of power generation from hydel sources, including the possibility of gradual escalation of tariffs.
Power Minister Piyush Goyal said in the Lok Sabha that various options were being looked at to make hydro power more viable in the current scenario.
"Several ideas are under consideration of the government to bring down the cost of hydro power generation, particularly amortising depreciation over a much longer period," Goyal said during Question Hour. Among others, a gradual escalation of hydro power tariff can help keep the costs at the back end, he said.
Currently, 44 hydro electric projects - having a generation capacity of over 25 MW - are under construction.Their installed capacity would be little over 11,993 MW.
On thermal power plants, Goyal said there was more than 68,000 MW capacity of such projects in the pipeline while around 50,000 MW of conventional power generation capacity was added in the last two-and-a-half years.
A lot of these plants are not getting enough supply or sale because "installed capacity base is increasing faster than the demand".
Asked whether the government is going to amend the policy related to mega power plants, Goyal said it is looking at revising the documents related to ultra mega power projects.
"We are looking at revising the UMPP documents but we are not doing it in a hurry," he added.