In order to facilitate more hydro power generation in the country, the Power Ministry plans to make it mandatory for electricity distribution utilities to buy a percentage of their requirement from hydel stations.
"We are looking at a provision to create HPOs (Hydro Purchase Obligations) like RPOs (Renewable Purchase Obligations),'' Minister of State for Power (Independent Charge) Jyotiaditya M. Scindia said at a FICCI conference.
At present, a similar mechanism is in place for renewable generation known as Renewable Purchase Obligation. However, not many States are meeting the target of RPOs.
Implementation of same mechanism for hydro projects would benefit both public sector companies such as NHPC and SJVNL and private generators such as Jaiprakash, GMR Energy and Jaypee Group, among others.