Two significant hydel power projects which had been proposed by India to be set up in Myanmar, are facing the danger of being scrapped after state-owned National Hydel Power Corporation (NHPC) which had been commissioned to study the feasibility of the projects, has termed them unfeasible citing environmental concerns and tariff issues.
In an effort to salvage the two projects, top Power Ministry officials are set to meet their Ministry of External Affairs (MEA) counterparts on January 29, 2014 to discuss ways to avoid a no show.
Though NHPC Director (Finance) A Bl Srivastava could not be reached for his comments on the matter, official sources told The Pioneer that despite NHPC’s adverse detailed project reports (DPRs) on the two projects, it is being ensured that they don’t get scrapped and, therefore, the meeting with MEA officials has been organised, where matters related to environmental concerns and tariffs are likely to be specifically discussed and solutions thrashed out.
The meeting has been scheduled on a priority basis as apparently after NHPC having raised concern on issues like tariff rates and environmental matters, even the Myanmar Government is learnt to have shelved its plans of going ahead with the implementation of the two projects.
Sources further added that though the situation is serious, the Power Ministry along with the MEA would be making all out efforts to approach the concerns raised by the DPRs and address them as soon as possible.
The urgency being shown by the Government is driven by the fact that by initiating the two hydel projects in Myanmar, India is trying to counter the Chinese presence which is always a challenge which looms large in the entire South Asian region for New Delhi, especially in matters related to economic cooperation.
Failure of these projects to take off could be a serious setback for the Government, and therefore the future of these endeavours hinges entirely on the January 27 meeting, sources added.
The two projects are a 1,200 megawatts (MW) hydroelectric project in Tamanthi in Myanmar, while the other one is a 880 MW project in Shwezaye. NHPC recently submitted the DPRs to the MEA, the Myanmar Government as well as to the Central Electricity Authority (CEA).
The Mini Ratna company had been directed by the MEA to look at the feasibility aspect of the two projects and move ahead with their development, which was mainly initiated to strengthen the bilateral ties with Myanmar.
According to information, the DPRs prepared by NHPC are learnt to have mentioned that implementing the two projects could leave serious environmental impact on the region where they are coming up. Apart from this, the proposed tariffs for the power to be generated from them too could be unviable, considering the fact that the expenditure to be incurred in the two projects runs into thousands of crores.
Also as hydel projects normally take a long time in completion, the cost escalation is also a factor which needs to be taken into consideration for deciding the power tariffs. This factor apparently is leading to tariff rates which NHPC has found unviable, sources said.