Policy on cards for takeover of stalled private hydro projects
The government is considering a policy for takeover of stalled private hydro projects by PSUs like NTPC NSE 1.14 %, NHPC NSE 1.90 % and SJVN NSE 0.18 %, amid the country’s commitment to meet 50% of its energy requirement through non-fossil sources.
A large number of hydroelectric projects awarded to private companies, particularly in the north eastern region, have been stalled due to various challenges. According to estimates, 90% of the 60 GW projects awarded to various private and central PSUs (CPSUs) are yet to be developed.
The central government is considering preparing a policy to facilitate CPSUs to take over such projects, most of which have not yet been referred to insolvency courts by lenders. State governments that have awarded the projects are contemplating terminating the contracts with private companies, which may lead to long litigations, a senior government official said.