Uncertainty preventing investments in hydel power projects: Piyush Goyal

New Delhi: Uncertainties in the hydro power sector are keeping investors away from hydel projects although the country has huge potential, Power Minister Piyush Goyal told Lok Sabha on March 19. Many hydel power projects are facing hurdles, resulting in long delays and stoppage of works. "There is uncertainty over hydro power projects. Investors are not ready to make investments," said Goyal, who is also in charge of Coal and New and Renewable Energy Ministries.

Even though existing hydel projects are generating electricity at cheaper rates, he said many new ones are stuck and cited the examples of Subansiri (Assam) and Teesta (Sikkim) plants, among others. "Different projects are stuck due to different reasons," he said and cited politics, environmental issues and court rulings being among the various reasons.He assured that government would make efforts to start hydel projects once the "uncertainty" is over. At the end of January, installed hydropower generation capacity in the country stood at nearly 41,000 MW.

Noting that the House needs to have a discussion on hydel projects in the country, Goyal said many regions including North East and Uttarakhand have significant hydro potential.