Wednesday, August 21, 2013: Himachal Pradesh government has planned to prepare new power policy in order to harness solar energy. According to Chief Minister, Virbhadra Singh, the state government is making efforts with a view to preserve the diminishing conventional resources to meet the rising power demand. He also pointed out that the possibilities of more hydro power as well as non-conventional power resources are being explored in the state.
In order to create awareness regarding the use of eco-friendly renewable energy (without recurring fuel cost), HIMURJA with the help of Ministry of New and Renewable Energy Government of India is organising different functions. He opines that the development and increased use of energy sources will result in sustainable and environment friendly energy security in the state. The small hydro power projects up to 2MW capacity have been reserved for exclusive use by the Himachalis. Apart from this, preference would be given to them in the projects that have a capacity of 5MW.
Allocation is complete for more than 95 per cent of the total 23000MW exploitable hydro power capacity and upfront premium has already been received, the Chief Minister informed the 14th Finance Commission members in Shimla recently. He stated that per unit sale rate of power decreased to Rs.7 from about Rs.2-3 per unit. Therefore, the independent power producers, who have been allotted power projects have lost interest in it.
The Minister has requested the Finance Commission to offer suggestion to the Government of India to allow Himachal Pradesh to levy generation tax on hydro power produced within the state. Moreover, he informed that the bill for taxation on generation of power within state has been passed by the State Legislative Assembly. It is now awaiting Presidential assent. He cleared the air by saying that article 288(2) of the Constitution allows the state to impose this tax.
