Velcan Holdings Group is developing Heo and Tato-1 Hydropower projects with total installed capacity of 426 MW in Siang basin in Arunachal Pradesh since 2007. The international company with deep pockets and access to international capital markets has not been able to start work even in 2021. It obtained a number clearances, some of the like the CEA (Central Electricity Authority) techno-economic clearance has lapsed. No significant progress is seen in Land Acquisition as local people are rightly opposing. It is unable to find any buyers for the power to be generated, no one is ready to sign PPA (Power Purchase Agreement). The company questions if the low allocation to hydropower purchase obligations will at all help in making the projects bankable (clearly implying that the projects are not bankable currently). This is the state what it describes its Siang basin hydropower projects as the “the only hydropower projects of such size in India owned and developed by a foreign investor”, which “are amongst the most advanced private projects and present competitive techno-economic and environmental features”. The state of the rest of the large hydro projects will clearly be much worse. Why is the government pushing such unviable, destructive projects?
Read the excerpts from the company’s statutory filing in Europe on Apr 30, 2021 below.Continue reading “DRP NB 10 May 2021: Velcan Holdings provide another evidence of unviable large hydro in India”