This document outlines the policy for developing micro, mini, and small hydro power projects in Uttarakhand, India. It defines project categories and eligible developers. Projects above 2MW will be allocated through competitive bidding on a build-operate-transfer basis for 40 years. The state government will facilitate clearances, land acquisition, and grid connectivity. Developers will receive incentives like tax benefits, priority in bidding, and purchase of power by the state utility. The policy aims to promote private investment in hydro power development in Uttarakhand.

1. HYDRO POWER DEVELOPMENT
POLICY FOR DEVELOPMENT OF MICRO, MINI & SMALL HYDRO POWER
PROJECTS 2015 (UTTARAKHAND)
MADE BY: ANIL KHADKA
MBA POWER MANAGEMENT (UPES)

2. SCOPE
 Uttarakhand State Government will be inviting open bids for
development of SHP (>2MW) under PPP mode.
 The projects will be offered for allocation only after the preparation
of DPR by state government agencies.
 The SHP under this policy can be developed as IPP or as CPP
 Classification of Projects
SHPGroup
Category A
Above 2MW & upto5MW
Category B
Above 5MW
SHP allotted will be on
BOT basis (period 40yrs)

3. Any community Based Org,
Society of UK registered under
Society Registration Act 1860
Any registered firm/company
under Company Act 1956 having
its registered office in UK(majority
of shares must be owned by
Domiciles of UK)
Any Panchayat Raj Institution
Any joint venture/consortium
constituted among the above
category of developers
Any partnership firm owned by
domiciles of UK
Any industry registered in District
Industries Offices of UK for its own
captive power use only
Developers Eligible
for SHP(>2MW &
up to 5MW)
Supports to
Panchayat
Raj
Institutions
Incentives
(financial
support
by MNRE)
State Gov
assistance
in
arranging
finances
Technical
support
by UJVNL
1
2
3
Unallocated projects: SHP may be allocated under
general category after 2 cycles of bidding
SHP >5MW will be open to all developers without any
reservation or preference

4. OPERATIVE PERIOD
SHPAllottedonBOT
Period will be 40
years (including 5
years of
construction & 35
years of O&M
Condition
State gov may
extend the
construction
period of project
due to
circumstances
that are beyond
developer’s
control but
developer will not
have any right for
claiming extension
EndofBOTperiod
Whole project will
automatically
stand transferred
to state gov/any
entity of state gov,
free of cost & free
of encumbrances
(i.e Legal
Liabilities)

5. SELECTION OF DEVELOPERS
 Open competitive bidding for allocation of projects (Bidding process is open to both
IPP & CPP who are eligible to participate. The RFQ & RFP will be made available to
bidders on payment of a prescribed fee and bids will be invited under Single Stage
Two envelope format)
 Pre-Qualification criteria : Parameters will be based on criteria mentioned in “Model
Request for Qualification for PPP Projects” document issued by Department of
Expenditure, MoF, GoI in 2009 & all further amendments thereof. Necessary info
regarding attributes to be evaluated, passing score required will be specified.
 Evaluation of Bids : Broadly pre-qualification criteria would be based on balance sheet,
annual report, technical & financial capacity etc. Based on above parameters developers
will be pre qualified & a list of technically qualified bidders will be prepared (only these
bidders financial proposals will be evaluated)
 Revised financial Bids : may be invited from all eligible bidders if some technical surprises or
other conditions demand so.
 Bid parameter : developers quoting highest upfront premium above threshold premium will
be given project. Min threshold premium will be described further.

6. The benefit of 50% relaxation in the highest bid (upfront premium) will also be applicable to the hotels,
resorts, educational institutions or other bulk power consumers having sanctioned load >0.5MW established
in hilly districts of state
Incentives
for CPP
projects
50%
Relaxati
on
Prefere
nce in
bidding
Prefere
nce in
bidding
For Industrial units located in hilly districts
of Uttarakhand
For Industrial units located in plain districts of Uttarakhand
Condition: Bids are not less than 50% of the highest Bid Condition: Bids are not less than 20% of the highest Bid

7. Bids quoting upfront premium below the threshold would be rejected
Above 2MW & upto 5MW (category A) Rs. 1,00,000 per MW
Above 5MW & upto 25MW(category B) Rs. 5,00,000 per MW
 State govt can revise threshold premium on project to project basis
at any time
 LoA ( Letter of Award) is issued to selected bidder
 Upfront premium, performance security is required to be deposited
in shape of Bank Guarantee

8. DEVELOPMENT OF PROJECT
 Developer will arrange all necessary clearances & financial closure within 20 months
from date of signing of implementation agreement
VARIOUS CLEARANCES & FINANCIAL CLOSURE
DENIAL OF CLEARANCES BY STATE/CENTRAL GOV
 The performance security may be refunded to the developer. Developers will not be
eligible for any interest/compensation on performance security deposited.
CONSTRUCTION PROGRESS MONITORING
 If progress of project is not found satisfactory on the basis of several milestones then
reason for delay will be called for
REASONS BEYOND DEVELOPER CONTROL
 Necessary time extension will be given otherwise developer would be liable to pay a
penalty as prescribed in the Implementation Agreement

9. Grid connectivity
to the generators
including their
evacuation
Interface metering
GRID
INTERFACING &
EVACUATION
ARRANGEMENTS
In accordance with UERC
OPEN ACCESS
Generating station shall be allowed to avail open
access in accordance with provisions of E ACT03 &
UERC regulations 2010 & their successor regulations
SALE OF ELECTRICITY
UPCL, at the rates
determined by
UERC
State gov will
provide for
payments to be
made by UPCL for
such purchase
1st
If UPCL refuses
Developer can sell
to any consumer,
distribution
licensee, power
trading company
2ndPREFERENCE
WHEELING OF ELECTRICITY
UPCL/PTCUL will undertake to transmit through its grid the power generated for sale
within/outside state for which wheeling charges would be announced in advance

10. MAJOR INCENTIVES
By GoUK
Facilitation in
Construction of
Power Evacuation
Line(no permission
required by Gov)
Lease of Gov
land,if available at
project site (for 40
yrs at fixed rate
Rs.1/sqm annually)
By GoI
Announced from
time to time by
MNRE & GoI
Lease of Local
Bodies/Gram
Samaj Land (at
fixed rate Rs.5/sqm
annually)
Permission of
Purchase of
Agricultural Land
(more than 250
Sqm)
Industry Policy
Benefit Applicable
No clearances
required by
Irrigation dept
Fisheries dept
Jal sansthan

11. SINGLE WINDOW CLEARANCE FOR SHP
State Govt will provide clearances within a period of 90 days. Energy Department of state gov or
an agency nominated by it will act as nodal agency
BENEFITS UNDER CDM (CLEAN DEVELOPMENT MECHANISM)
 State would encourage projects to obtain benefits under CDM despite these projects
may not produce cheapest form of generating energy
 UJVNL/UREDA are notified as nodal agency for carbon credits under CDM
 CDM benefits will be shared between developers and State Govt as per applicable
UERC Regulations
Projects Becoming Techno-Economically Unviable Due To Nateural Disaster
 Request to surrender the project will have to be made in written to the Govt of UK
with documentary evidences regarding changes in topography of the project area
 If request get accepted, State Govt will refund all the upfront premium deposited &
will also release performance security deposited by developer
 No interest on upfront premium will be payable to the developer

12. THANK YOU