In
the case of the Dibang hydropower project in Arunachal Pradesh awarded
to NHPC Ltd, which is yet to receive environment and forest clearances,
the state government has accepted Rs225 crore as advance payment and
has used it to revive the ailing Arunachal Pradesh State Cooperative
Apex Bank. However, T. Norbu, Arunacha Pradesh’s power secretary,
defended the state’s move and said the decision was taken after
“discussing the issue with NHPC, the finance ministry and the Planning
Commission”.
“NHPC, being a
public sector firm, paid the money as a special case,” he said. “All
this money comes to the state exchequer as state revenues. The
rehabilitation and resettlement in the project-affected area has to be
done by the developer as per the project agreement and the Electricity
Act, 2003,” Norbu added.
“We accept a premium or upfront
payment from the hydropower project developers. We also charge an
advance against free power. While we charge a part of this upfront
payment immediately, the balance is collected later. This amount goes
to the state exchequer and a part (of it) is used for the development
of the project-affected people,” said Shatrughan Singh, Uttarakhand’s
power secretary.
Ajay Mittal, power secretary, Himachal Pradesh, could not be
reached for comment.
Activists have challenged the practice.
“The
Arunachal Pradesh government receiving huge monetary advances for
hydropower projects which have no environment and forest clearances
compromises the legally mandated environmental decision-making process.
These projects are coming up in an ecologically and culturally
sensitive region and require thorough scrutiny for their environmental
viability. Even though the Central government (MoEF) grants the
clearances, the state government plays an important role in the
clearance process,” said Neeraj Vagholikar of Kalpavriksh, an activist
group that works on environment and conservation issues.
Explaining
the project approval process, Norbu said: “The first-stage clearance
for the projects have been obtained by many companies to whom projects
have been awarded, and (for which they) are conducting survey
investigations. After the survey investigations are over, the detailed
project report will be prepared, followed by a public hearing. After a
public hearing is done, the final clearance will be provided followed
by the clearances from the Central Electricity Authority and Public
Investment Board.”
According to the policy of the Arunachal
Pradesh government, companies winning projects having a generation
capacity of 100-500MW need to make an upfront payment of Rs1.5 lakh per
megawatt. It is Rs2 lakh per megawatt for projects having capacities
between 500MW and 1,000MW, and Rs3 lakh per megawatt for projects above
1,000MW.
“The public hearings for the Dibang project saw
almost cent per cent (total) opposition from the locals as an advance
has been taken without consulting the public. There is a valid concern
that these processes will be merely cosmetic exercises as the state has
already taken an advance amount from the company. They feel that the
state government receiving this money before the public consultation
process is completed and mandatory clearances are received, amounts to
the government mortgaging people’s lands,” added Vagholikar.
“There
are a lot of problems with the hydro projects. It does not get easier
as they are a state subject. Relocation and resettlement is a big
problem and should be taken care of,” said Kirit Parikh, member,
energy, Planning Commission, in an earlier interview.
Arunachal Pradesh has awarded projects totalling 26,800MW in the
past 30 months alone.
“We
award projects in a transparent manner and we plan to award around 15
projects more with less than 100MW (capacity each) shortly,” Norbu said.
