MoP issues guidelines for budgetary support for flood moderation in hydropower projects

The MoP has issued detailed guidelines for budgetary support with respect to flood moderation and enabling infrastructure (roads and bridges) for hydropower projects, with the aim to reduce the tariff levels of these projects. The amount required for such projects will be determined on a case-to-case basis. The limit of budgetary support for roads and bridges will be Rs 15 million per MW for projects up to 200 MW and Rs 10 million per MW for projects above 200 MW. In another development, the MoP has approved the formulation of a dispute avoidance mechanism for construction contracts of central public sector enterprises executing hydro power projects. It mandates the appointment of independent engineers, who will oversee the project and openly communicate with all the key stakeholders.