A large number of prominent dignitaries participated and shared their views and ideas in the Workshop. The principal among them were: Dr. S K Parik, Member, Planning Commission, Shri Shyam Sharan, Special Advisor to the Prime Minister, Shri A K Basu, Chairman, CERC, Shri Rakesh Nath, Chairman, Central Electricity Authority, Shri K Padmanabhaiah, former Union Home Secretary, Shri P Abraham, former Union Power Secretary and Shri A M Gokhale, Special Advisor to the Deputy Chairman, Planning Commission. The Honourable Chief Minister of Arunachal Pradesh, Shri Gegong Apang addressed the Workshop and outlined a vision for development of hydropower sector. Honourable Deputy Chairman, Planning Commission Dr. Montek Singh Ahluwalia, addressed the concluding Session. Various CPSUs, IPPs, Financial Institutions, Transmission Utilities, Ministry of Power, Government of India and officials of Government of Arunachal Pradesh among many others participated in the Workshop.

The workshop deliberated on issues such as special dispensation for IPP hydro projects considering cost uncertainties due to geological risks and energy uncertainty due to changes in water flows, Policies and guidelines in context of development of hydro power and matching evacuation systems, Public-Private-Partnership, Need to look at Hydro power policy in a framework that is not thermal power centric, Power Purchase Agreements and regulated tariffs with SEBs and Discoms, Need and Plan to build Mega-Capacity and Extra High Voltage Transmission Corridor.

Currently India has a total Hydro electric potential of 1,50,000 MW out of which we have been able to develop only 17 per cent and the National Electricity Policy reiterates that maximum emphasis would be laid on the development of the feasible hydro power potential in the country.

Some key recommendations include:

1. Hydropower being a clean and renewable source of energy should be put on fast track in a pragmatic manner as visualized in the NEP.
2. Urgent need to develop the enormous hydro-electric potential of the country in order to mitigate power shortages, provide clean energy, improve the hydro- thermal mix, and facilitate socio- economic development ofhydro rich NE States.
3. It is of immense national interest to develop on fast track the infrastructure in Arunachal Pradesh including the hydropower sector considering the unique strategic location of the State.
4. While North-East had the largest hydropower potential, it has the least installed capacity. A clear road map needs to be drawn, particularly for the Independent Power Producers (IPPs) and Public Private Partnership (PPP) hydro projects so that their financial closure is achieved at the earliest possible. The progress should be reviewed at the Ministry of Power and monitored at the PMO level. Empowered Committees should be set up by the State and Central Governments to ensure expeditious clearance of hydropower projects.
5. There are genuine difficulties for hydro developers to participate in tariff based competitive procurement inquiry due to: a) Cost uncertainty emanating from high geological risks in the Himalayan region; b) Energy uncertainty due to variations in water flows;
6. It is logical for States with hydropower potential to obtain a fair compensation and opportunity price for their hydropower project sites from the prospective developers. This shall include atleast 12% free power, certain amount of equity participation and cess for socio-economic development as determined by the State. CPSUs should deposit advance fund equivalent to the monetary value of 2 percent power out of the 12 percent free power of the host State on an annual basis until the first year of the commercial operation of the project. Any stipulation by State Government requiring the developers to part with free power over and above the 12 percent may also be justified but the producers are likely to transfer the burden of the same to the buyers. Similarly any lump sum upfront one-time compensation from the IPPs/CPSUs is likely to result in higher eventual tariff.
7. A consensus may be developed on a transparent methodology for allotting the hydro sites to IPPs and PPPs. The guidelines should provide the required flexibility to meet the special conditions of individual States.
8. Need to review the existing tariff policy applicable to the IPPs and PPPs for hydropower projects. In view of the various challenges involved in the development of the hydropower projects, the possibility to allow distribution utilities to enter into long term PPAs with IPPs and PPPs through the negotiated route needs to be considered so that tariff determination can be done on a cost-plus performance basis under the provisions of Section 62 of the Electricity Act, 2003.
9. CEA and Ministry of Environment & Forests (MoEF) may examine and accord clearance to hydro project proposals on a priority basis. Where MOUs have been signed, the IPPs and PPPs companies must complete the preparation of the Detail Project Reports (DPRs) and refer them to the concerned authorities for necessary clearance.
10. The State Government should have the power to allocate projects up to 250 MW in consonance with the mega definition of hydropower project.
11. The host State should be allowed to sell its share of power of a project at a market/negotiated price without any restrictions.
12. The Central Government should provide substantial assistance for developing transport and communication infrastructure in the State to a level that enables easy and speedier development of the hydropower sites.
13. The Policy on Resettlement and Rehabilitation (R&R) should be clearly outlined by the State. Cost of R&R will have to be suitably inbuilt into the project cost. The Governments could also outline the nature of assistance that can be provided by them.
14. The hydropower project should be planned to provide for meeting the maximum peaking power capability.
15. The Central Government should provide viability gap funding to keep transmission cost of remote hydropower project reasonable so that the landed cost of electricity is affordable.
16. Advance action should be taken to plan evacuation of 55,000 MW through the chicken-neck area, keeping national security and energy security in view. Financial assistance may be considered for POWERGRID for this purpose.
17. A national transmission tariff should be developed as visualized in the National Electricity Policy and Tariff Policy so that the cost of power evacuation from remotely located hydropower projects is socialized. The National Transmission Tariff should be structured in such a manner that it is economically viable for generating stations in Arunachal Pradesh to supply power to the Distribution companies locatedin other parts of the country.
18. The Planning Commission should allocate a special grant of about Rs. 8400 crores to facilitate equity participation by the State Government of Arunachal Pradesh in the joint venture projects with the IPPs and CPSUs.

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