BENEFIT SHARING FROM HYDRO POWER PROJECTS

Transcription

1 BENEFIT SHARING FROM HYDRO POWER PROJECTS BCK Mishra Director (Operations) Uttarakhand Jal Vidyut Ningam Ltd. & Incharge Energy Cell, Government of Uttarakhand 1

2 OVERVIEW UTTARAKHAND STATE AT A GLANCE POWER UTILITIES IN THE STATE HYDRO POWER POTENTIAL IN UTTARAKHAND ABOUT STATE GENCO UJVN LIMITED STAKEHOLDERS FOR BENEFIT SHARING IN HYDROPOWER PROJECTS BENEFITS TO PRIMARY STAKEHOLDER (PAF) BENEFITS/COMPENSATION TO CENTRAL GOVERNMENT BENEFITS/COMPENSATION TO STATE GOVERNMENT STAGES OF BENEFIT SHARING CASE STUDY : THDC INDIA LTD. BENEFIT SHARING SYSTEM CONCLUSION 2

3 UTTARAKHAND STATE AT A GLANCE UTTARAKHAND is the 27th STATE of India, formed after bifurcation of Uttar Pradesh on 9th of November, Geographically, the State is spread over Sq. Kms with 13 Revenue Districts & inhabited villages. Nearly 86% of the area is hilly, and about 71% of the area has forest cover and the rest is Terai Area. Assessed hydropower potential of Uttarakhand state is more than 27,000 MW. Before creation of the State, MW hydro-power potential was harnessed. After formation of the State MW hydro-power potential has been harnessed. Total potential harnessed in the state is MW Per Capita Electricity Consumption in India is 1010kWh

4 POWER UTILITIES OF STATE A. GENERATING UTILITIES UJVN Limited Uttarakhand Renewable Energy Development Agency (UREDA) B. DISTRIBUTION UTILITY Uttarakhand Power Corporation Limited (UPCL) C. TRANSIMISSION UTILITY Power Transmission Corporation of Uttarakhand Limited (PTCUL) 4

5 OTHER POWER GENERATING UTILITIES CPSUs NHPC India Ltd NTPC Ltd THDC India Ltd SJVN Ltd. Why state decided to involve CPSUs, State Utility and IPPs? IPPs JPVL GVK L&T Lanco GMR Himurja Polyplex Saryu Hydro Power Gunsola Hydro Parvatiya Power, etc. 5

6 DETAILS OF HYDRO POWER POTENTIAL IN UTTARAKHAND Project Particulars (MW) UJVNL CPSUs IPPs UREDA ID UIPC PDA Identified Total (MW) Under Operation Under Construction DPR Approved, Clearances Obtained/ Under Process Projects for which DPR Prepared Under S&I Stage Total PDA -Pancheswar Development Authority ID - Irrigation Department 6

7 UJVN LIMITED UJVN Limited is an ISO 9001:2008 Company, incorporated under the Companies Act 1956 by Government of Uttarakhand on 12th of February Objectives: To establish, takeover, operate and maintain power generating stations harnessing the conventional, nonconventional, nuclear and other sources of energy that includes sub-stations, transmission lines, other ancillaries and activities that are essential for generation, transmission, distribution and trading of power. 7

8 MAJOR ACTIVITIES OF UJVNL IN ENERGY SECTOR Installed Capacity Hydro MW (LHPs MW & SHPs MW ) Solar MWp (Utilizing Assets Properly) Construction Projects Large - Vyasi Hydroelectric Project (120 MW) Small MW (10 Projects) DPR/S&I Large 3054 MW (12 Projects) Small MW (12 Projects) RMU Completed MW (3 Projects+2 units of one Project) Under Planning MW (8 Projects) Solar Under Implementation Canal Top 19 MWp Canal bank 1 MWp Bagasse Based Co-gen Project- 38 MW (2 Nos.) Under Tendering Process Training and Consultancy Nodal Agency of Govt. of Uttarakhand 8

9 STAKEHOLDERS FOR BENEFIT SHARING IN HYDROPOWER PROJECTS Primary Stake Holder - Project Affected Families Primary stakeholders are those people and groups ultimately affected by the project. This includes intended beneficiaries or those negatively affected (for example, those involuntarily resettled in the case of hydropower projects) Secondary stakeholders - Central/ State Government, DISCOM, Project Affected Area, Command Area Secondary stakeholders are indirectly affected by the plans. They can be divided into funding, implementing, monitoring and advocacy organizations, or simply governmental, nongovernmental and private sector organizations. Tertiary Stakeholders - NGOs, Other Institutions, Indirectly Affected People etc. Tertiary Stakeholders are not involved or directly affected, but influence opinions either for or against the goals and plans. 9

10 Benefit Sharing: Formalization Through: Electricity Regulatory Act 1998 Electricity Act 2003 EIA Notification 2006/2016 Tariff Policy 2006/ 2015 Hydro Policy 2008 Land Acquisition and R & R Policy (GoI) Hydro Policy of GoU 10

11 HYDRO POWER POLICY, 2008 Apart from 12% free power, an additional 1% free power from the project would be provided and earmarked for Local Area Development Fund, aimed at providing a regular stream of revenue for income generation and welfare schemes, creation of additional infrastructure and common facilities etc. on a sustained and continued basis over the life of the project. Host State Governments would also provide a matching 1% from their share of 12% free power towards above corpus. For a period of 10 years from the date of commissioning of the project, 100 units of electricity per month would be provided by the project developer to each Project Affected Family through the relevant distribution company 11

12 OTHER BENEFITS TO PRIMARY STAKEHOLDER Compensation as per Central/ State govt. project specific polices Employment (Direct/indirect) Infrastructure Facilities e.g. Medical Services, Transportation, Communication, Education etc. Up gradation of Living Standard 12

13 HYDRO POWER POLICIES Government of Uttarakhand has framed following hydro power policies for harnessing hydro power in the State: 1. Policy for harnessing Micro & Mini Hydro Power Project (up to 2 MW), notified in the year Policy for harnessing Small Hydro Power Project (above 2 MW and up to 25 MW), notified in the year Policy on Hydropower Development by Private Sector (25 MW to 100 MW), notified in the year Policy on Hydropower Development by Private Sector (above100 MW), notified in the year

14 SPECIFIC BENEFITS TO PAFs AS PER UTTARAKHAND HYDRO POWER POLICIES Development of hydro-power projects up to 5 MW are reserved for Panchayat Raj Institutions (Gram Panchayat, Block Panchayat, Zila Panchayat). Capital subsidy from State and Ministry of New and Renewable Energy (MNRE) Social Venture Capital Fund from Rural Development Department, GoU Micro & Mini hydro projects (treated as an Industry) and all the benefits of Industry will be passed to the project owner The Govt. land / Gram Panchayat land to be leased for 40 premium of Rs. 1 (one) per square meter.

15 SPECIFIC BENEFITS TO PAFs AS PER UTTARAKHAND HYDRO POWER POLICIES No Royalty up to 5 MW. Developers will have to contribute 1% of the approved project cost towards the LADF during the construction phase and 1% of the net energy generated (energy or revenue) during the whole operation period of the project. Developer will have to contribute total of 3% of net energy generated or equivalent revenue to the various Panchayat Raj 1% to the project affected Gram Panchayats, 1% to the affected Block Panchayat and 1% to the Zila Panchayat of the District in which the project is located. 15

16 COMPENSASTION TO PAFs AS PER R&R POLICIES Land:- Land allotment on 70% or more land acquisition or compensation with ex-gratia/ allowances as per Policy. House compensation: Replacement cost as per schedule of rates of PWD with sustenance allowance and rent for 12 months. Compensation of other structure: As per the valuation by PWD with allowances for the construction of new structures. Displaced shopkeeper: Allotment of shops and financial assistance and livelihood allowances. Affected BPL family without homestead land: Constructed home or 4.0 Lakh in lieu thereof. Rural Artisan/Small Traders and Self Employed PAF s: Rs.50,000 R&R benefits for PAFs belonging to ST & SC Community: Additional one time financial assistance, preference in land allotment, 25% higher Resettlement Grant. Tenants: Rehabilitation grant 750 MAW+ Financial Assistance. 16

17 OTHER BENEFITS TO THE PAF 750 days MAW and 500 days MAW for acquisition of land. Life Pension of Rs. 1000/- per month to Vulnerable Families Non-litigation allowance equal to 10% of compensation Third party insurance against damage to any house Agriculture Labour-50 days MAW for loss of livelihood days of MAW to the PAFs who have not been provided house or land for construction of house or not provided any employment. 17

18 EIA Notification 2006 As per the said notification Public hearing is to be held in the project area. The outcome and demands of the affected population during public hearing is incorporated in the EMP. EMP Demands (for Bowla Nand Prayag HEP 300 MW of UJVNL) Construction of School & ITI Management of water resources Employment to PAF Compensation to PAF

19 BENEFITS TO CENTRAL AND STATE GOVERNMENT Taxes and Duties Free Power from CPSUs and IPPs Royalty Water Tax Green Cess

20 SECONDARY BENEFIT COMMAND AREA Multipurpose Hydro Project Drinking water Water for Irrigation Electricity MWp 1. Uttarakhand 2. Uttar Pradesh 3. Himanchal Pradesh 4. Haryana 5. Rajasthan 6. Delhi Lakhwar Multipurpose Project (300 MW) Kishau Multipurpose Project (660 MW) 20

21 STAGES OF BENEFIT SHARING During Conceptualization of Project (DPR Stage) During Project Construction Stage During Project Operation Stage 21

22 CASE STUDY THDC INDIA LTD. BENEFIT SHARING SYSTEM 22

23 TEHRI HYDRO ELECTRIC DEVELOPMENT CORPORATION (THDC) THDC, a Joint Venture of GoI and GoUP, incorporated in July 88. Initial mandate - to develop, operate & maintain Tehri Hydro Power Complex (2400 MW) and other hydro projects in Bhagirathi valley. PROJECTS STAGE RIVER INSTALLED CAPACITY(MW Tehri Dam & HPP Operation Bhagirathi 1000 (4 X 250) Koteshwar HEP Operation Bhagirathi 400 (4 X 100) Tehri PSP Construction Bhagirathi 1000 (4x250) 23

24 TEHRI DAM PROJECT STAGE-I (1000 MW) REHABILITATION & RESETTLEMENT VILLAGES / FAMILIES AFFECTED OLD TEHRI TOWN : 5291 Urban Families FULLY AFFECTED : 5429 Rural Families (37 VILLAGES) (Relocated) PARTIALLY AFFECTED : 3810 Families (72 VILLAGES) (NOT TO BE RELOCATED) TOTAL PROJECT COST : Rs Crores COST OF R&R : Rs Crores. No. of Project Affected Persons : 800 Provided Direct Employment Rehabilitation implemented by the State Govt. with funds provided by THDC. 24

25 REHABILITATION & RESETTLEMENT POLICY The basic principles that had guided the formation of the Rehabilitation policy are: Rural oustees to be compensated through allotment of agricultural land or cash in lieu thereof. The rural oustees should be settled in large blocks so that the fabric of their social life remains intact. Oustees or their representatives be involved to the extent possible in selecting the rehabilitation centers. To the extent possible, consideration be given to the preference of the oustees for settlement at a particular centre. Community facilities be provided at each of the rural rehabilitation centers at the cost of the project even if these did not exist at their earlier settlements. 25

26 TEHRI DAM PROJECT STAGE-I REHABILITATION & RESETTLEMENT Old Tehri Town comprised of Urban Population of 5291 families, categorized as fully affected. Old Tehri Town vacated in January, 2004 and completely Rehabilitated at New Tehri Town (NTT), or at Rishikesh and Dehradun as per the option of the rehabilitees. The plots/flats/shops of different sizes provided as per entitlement/option of the PAF. The House construction assistance provided to the PAFs. The New Township has all the modern facilities for - Education (including ITI and a University), Bedded modern Hospital, - Financial Institutions, District Administration Offices, - Markets, - Modern Bus Stand Terminus - Several places of worship etc. with larger area and better facilities irrespective of faith & religion. 26

27 TEHRI DAM PROJECT STAGE-I REHABILITATION & RESETTLEMENT Apart from compensation for property, every rural family was given 2 acres of developed irrigated land in rural area or 0.5 acres of developed irrigated near urban agglomerations of Dehradun / Hardwar. 27

28 IMPLEMENTATION OF R&R POLICY Govt. of India directed that the State Govt. shall take over direct responsibility of the entire rehabilitation task to be handled directly by its officers under the overall supervision and control of Commissioner, Garhwal. Funds for rehabilitation shall be made available by THDCIL as approved by Govt of India. Since the creation of Uttarakhand, the R&R is being implemented by Uttarakhand State. Policy decisions are taken at Govt. of India level. 28

29 CONCLUSION Without benefit sharing, hydropower projects may become more difficult to justify to society because of their cumulative environmental and social impacts. The positive benefits of hydropower development can be underlined by the creation of new and improved social and economic opportunities. The fair sharing of benefits would ensure that the rights and interests of the affected populations are recognized and respected. 29

30 THANKS 30

31 MICRO & MINI HYDRO POWER POLICY (up to 2 MW) Under this policy, projects are reserved for Panchayat Raj Institutions (Gram Panchayat, Block Panchayat, Zila Panchayat). 100% confirmation for procurement of generated power by UPCL.

32 EXECUTION OF MICRO & MINI HYDRO POWER PROJECT Panchayat would have the options for execution of project on their own or through formation of Special Purpose Vehicle (SPV) with any of the following: CBOs or SHGs of the State. Society (Society Registration Act 1860) Co-operative Societies Company (majority of the Director are the domicile of Uttarakhand) Industry Central Power Utilities, State Governments or any other Government owned entities. 32

33 AVAILABLE INCENTIVES Capital subsidy is available as per the standing guidelines of Ministry of New and Renewable Energy (MNRE), GoI Social Venture Capital Fund is available from Rural Development Department No royalty shall be charged on these projects. No entry tax will be levied by the State Govt. on Power Generation/Transmission equipment and building material used for MHPs. Exempted from the Water User Charges. Micro & Mini hydro projects in Uttarakhand shall be treated as an Industry. The Govt. land / Gram Panchayat land to be leased for 40 premium of Rs. 1 (one) per square meter.

34 SMALL HYDRO POWER POLICY (above 2 MW to 25 MW) SALIENT FEATURES 1.SHPs upto 5.00 MW - Reserved for Panchayat Raj Institution, CBOs, Societies of Uttarakhand. 2.SHPs above 5.00 MW - Open to all the developers without any reservation / preference. 3.Bidding parameter - Upfront Premium per MW. Above 2 MW and Up to 5 MW Rs. 1 Lac/MW (Min) Above 5 MW - Rs. 5 Lac/MW (Min) 4.Captive Power - Industrial Units located in Uttarakhand shall be given a preference of 20% in upfront premium for setting up captive small hydro power projects for industries in the plain districts 50% for industries in the hilly districts of the State. 34

35 SMALL HYDRO POWER POLICY 5. Royalty SALIENT FEATURES - contd. Above 2 MW and Up to 5 MW No Royalty Above 5 MW Exempted for first 15 years of operation. From 16th year of operation, a 15% of net energy generated 6. Local Area Development Fund (LADF) Developers will have to contribute 1% of the approved project cost towards the LADF during the construction phase and 1% of the net energy generated (energy or revenue) during the whole operation period of the project. 7. Developer will have to contribute total of 3% of net energy generated or equivalent revenue to the various Panchayat Raj 1% to the project affected Gram Panchayats, 1% to the affected Block Panchayat and 1% to the Zila Panchayat of the District in which the project is located. 8. SHPs will be eligible for all incentives, facilities & investment assistance, provided by the State Government under State Industrial Policy. 35

36 9. Transfer of project SMALL HYDRO POWER POLICY SALIENT FEATURES - contd. Permitted only once prior to commercial operation at a transfer fee of 20% of the upfront premium for the projects above 5 MW and 10% for the projects up to 5 MW paid by the original alottee. Permitted after the commercial operation of the project at a transfer fee of 10% of the upfront premium paid by the original allottee. 11. Single Window Clearance All clearances within the stipulated time frame, Department of Energy, GoU will act as a Nodal Agency and will coordinate with various Departments for getting the requisite clearances. 12. Rehabilitation & Resettlement - Uttarakhand Rehabilitation and Resettlement Policy for Hydro Power Projects or as amended from time to time will be applicable for R&R issues. 36

37 SMALL HYDRO POWER POLICY SALIENT FEATURES contd. 13. Automatic land use conversion - Agriculture to industrial 14. Permission for purchase of agricultural land beyond 250 Sq m will not be required, for this (The Uttarakhand (The Uttar Pradesh Zamindari Abolition & Land Reform Act 1950), (Adoption and Modification Order, 2001) (Amendment) Act 2003 Section-154, Subsection (4) (2) will be modified. 15. The developer can purchase the area of land as envisaged in the Detailed Project Report of the SHP approved by the State Government. The land purchased under this amendment will not be used other than the project construction 16. Uttarakhand Power Corporation Limited will have the first right of purchase of electricity generated by the SHPs. 37