Tehri Hydro Development Corporation, set up in July 1988, is a 75:25 joint venture between the Centre and Uttar Pradesh government. RST Sai, CMD, THDC, tells Sarita Choudhury about the crucial role hydro-power will play in the coming years
How would you sum up THDC’s performance and contribution to the development of the power sector in India?
Power is probably a narrow word to define the scope of THDC activities. Tehri is a multi-purpose project, with an aim to add 1,400-mw of new hydropower capacity in its 11th Plan period, besides making the 2,400 mw Tehri Hydropower Complex in Uttarakhand fully operational. The complex includes the 1,000-mw Tehri hydropower project, 400-mw Koteshwar hydropower project and Tehri pumped storage scheme with 1000-mw capacity.
Apart from Power Generation, Tehri also provides water for irrigation- stablisation of existing command area of 6.04 lakh h.a of Ganga Canal System besides bringing additional area of 2.70 lakh h.a under irrigation. It also provides 162 MGD of drinking water to Delhi and 142 MGD to various Towns of UP. Further, with its presence in the energy sector, THDC proposes to diversify into thermal (coal-fired) power generation and also renewable energy. THDC’s Articles of Association (AoA) is being suitably modified to factor this diversification.
After taking over as chairman what have been your major priorities?
The stablisation of Tehri power station is one of our immediate priority. Earlier, the machines were operational under the supervision of Russian and German experts. After the initial hand-holding by them, we realised the importance of pouring confidence into our personnel so that they can run the system as well. Having invested heavily in this project, we wanted the right amount of output from it. So, we took steps to train our personnel.
Successful commissioning of Koteshwar again falls under our list of priorities. Koteshwar will regulate water releases from Tehri Reservoir for irrigation. The reservoir created by Koteshwar Dam shall also function as lower reservoir for Tehri Pumped Storage Plant.
What are the small-term goals that THDC aim to ensure a major share in the domestic power sector?
During the early years of the 12th Plan (2012-17), we have proposed to commission the 444-mw Vishnugad Pipalkoti hydropower project, on Alaknanda River in Chamoli district of Uttarakhand. This happens to be the first project that THDC will be developing outside the Bhagirathi Valley. EPC contractors are likely to be appointed to execute this project.
Additionally, THDC will also be implementing six hydropower projects aggregating 695 mw in the districts of Uttarkashi, Chamoli and Pithorgarh. These projects are also targeted to be commissioned in the 12th Plan period. The Tehri Pumped Storage Scheme (PSS), currently under implementation will consist of four reversible units of 250-mw each. The upper reservoir would be the Tehri Dam (housing the 1,000-mw Tehri HEP) and the lower one would be the Koteshwar reservoir attached to the 400-mw Koteshwar HEP.
Tehri PSS is expected to cost Rs 1,656 crore, translating into a capital cost of Rs 1.75 crore per mw. The PSP will be operated on the principle of Power Banking. During off peek period utilities supply power to PSP for pumping water from lower reservoir. Here, PSP generates power using the pumped water and returns the power to the utilities.
PSP merely charges the utilities for converting off peek power into peek power. Delhi is a major beneficiary with a share of 600-mw. On completion of PSP, full peaking capacity of 2,400-mw of the Tehri hydropower complex would be achieved.
What are your plans for resource mobilisation?
With the first stage of Tehri becoming operational we expect around Rs 350 crore profits every year. Even if we give 1/3 of it as dividend to the government, the remaining will be retained as earnings. Again this can be invested for newer projects.
Now-a-days, projects are funded on the debt-equity ratio of 70/30 that allow us to leverage debt through our retained earnings. As a result, we can support the investment of Rs 600 to 700 crores every year. Once, the Koteswar project is commissioned investment will increase further.
The technology of power generation is advancing rapidly. What are your plans in terms of research and development (R&D)?
All over the world the conventional utilities don’t directly undertake in-house research on their own for the advancement of technology. Typically, we partner with the local manufacturers like BHEL. For instance, if BHEL comes out with a new technology and asks us to try, we share the development cost incurred. If it succeeds we simply go ahead. We have also started taking up the indigenous development of spare parts for our machines.
What are your plans for diversification and for joint ventures?
We are thinking in terms of diversifying into thermal, nuclear, wind power and other non-conventional sources of energy. By 2020, India will touch 7.2 lakh mw installed capacity, whereas the total capacity available under Hydro is presently 1.5 lakh. At the moment 34,000-mw is installed and remaining is already allotted to J&K and Arunchal Pradesh.
Realising the limited scope of hydro-power, we have taken an initiative to amend of our Memorandum and Articles of Association with both of our promoters i.e. Government of India and Government of Uttar Pradesh.We are also encouraging a joint venture with Nuclear Power Corporation for setting up a couple of Pumped Storage Projects allotted by Govt of Maharashtra.
What is your vision for Financial Year 2008-09?
In 2008-09, Tehri will be operational and construction of Koteshwar will be at its peak. We are going to ground two projects— Tehri PSP and Vishnugarh Pipalkoty, the later is funded by World Bank. Preliminary works for these two have already begun.
How would you sum up THDC’s performance and contribution to the development of the power sector in India?
Power is probably a narrow word to define the scope of THDC activities. Tehri is a multi-purpose project, with an aim to add 1,400-mw of new hydropower capacity in its 11th Plan period, besides making the 2,400 mw Tehri Hydropower Complex in Uttarakhand fully operational. The complex includes the 1,000-mw Tehri hydropower project, 400-mw Koteshwar hydropower project and Tehri pumped storage scheme with 1000-mw capacity.
Apart from Power Generation, Tehri also provides water for irrigation- stablisation of existing command area of 6.04 lakh h.a of Ganga Canal System besides bringing additional area of 2.70 lakh h.a under irrigation. It also provides 162 MGD of drinking water to Delhi and 142 MGD to various Towns of UP. Further, with its presence in the energy sector, THDC proposes to diversify into thermal (coal-fired) power generation and also renewable energy. THDC’s Articles of Association (AoA) is being suitably modified to factor this diversification.
After taking over as chairman what have been your major priorities?
The stablisation of Tehri power station is one of our immediate priority. Earlier, the machines were operational under the supervision of Russian and German experts. After the initial hand-holding by them, we realised the importance of pouring confidence into our personnel so that they can run the system as well. Having invested heavily in this project, we wanted the right amount of output from it. So, we took steps to train our personnel.
Successful commissioning of Koteshwar again falls under our list of priorities. Koteshwar will regulate water releases from Tehri Reservoir for irrigation. The reservoir created by Koteshwar Dam shall also function as lower reservoir for Tehri Pumped Storage Plant.
What are the small-term goals that THDC aim to ensure a major share in the domestic power sector?
During the early years of the 12th Plan (2012-17), we have proposed to commission the 444-mw Vishnugad Pipalkoti hydropower project, on Alaknanda River in Chamoli district of Uttarakhand. This happens to be the first project that THDC will be developing outside the Bhagirathi Valley. EPC contractors are likely to be appointed to execute this project.
Additionally, THDC will also be implementing six hydropower projects aggregating 695 mw in the districts of Uttarkashi, Chamoli and Pithorgarh. These projects are also targeted to be commissioned in the 12th Plan period. The Tehri Pumped Storage Scheme (PSS), currently under implementation will consist of four reversible units of 250-mw each. The upper reservoir would be the Tehri Dam (housing the 1,000-mw Tehri HEP) and the lower one would be the Koteshwar reservoir attached to the 400-mw Koteshwar HEP.
Tehri PSS is expected to cost Rs 1,656 crore, translating into a capital cost of Rs 1.75 crore per mw. The PSP will be operated on the principle of Power Banking. During off peek period utilities supply power to PSP for pumping water from lower reservoir. Here, PSP generates power using the pumped water and returns the power to the utilities.
PSP merely charges the utilities for converting off peek power into peek power. Delhi is a major beneficiary with a share of 600-mw. On completion of PSP, full peaking capacity of 2,400-mw of the Tehri hydropower complex would be achieved.
What are your plans for resource mobilisation?
With the first stage of Tehri becoming operational we expect around Rs 350 crore profits every year. Even if we give 1/3 of it as dividend to the government, the remaining will be retained as earnings. Again this can be invested for newer projects.
Now-a-days, projects are funded on the debt-equity ratio of 70/30 that allow us to leverage debt through our retained earnings. As a result, we can support the investment of Rs 600 to 700 crores every year. Once, the Koteswar project is commissioned investment will increase further.
The technology of power generation is advancing rapidly. What are your plans in terms of research and development (R&D)?
All over the world the conventional utilities don’t directly undertake in-house research on their own for the advancement of technology. Typically, we partner with the local manufacturers like BHEL. For instance, if BHEL comes out with a new technology and asks us to try, we share the development cost incurred. If it succeeds we simply go ahead. We have also started taking up the indigenous development of spare parts for our machines.
What are your plans for diversification and for joint ventures?
We are thinking in terms of diversifying into thermal, nuclear, wind power and other non-conventional sources of energy. By 2020, India will touch 7.2 lakh mw installed capacity, whereas the total capacity available under Hydro is presently 1.5 lakh. At the moment 34,000-mw is installed and remaining is already allotted to J&K and Arunchal Pradesh.
Realising the limited scope of hydro-power, we have taken an initiative to amend of our Memorandum and Articles of Association with both of our promoters i.e. Government of India and Government of Uttar Pradesh.We are also encouraging a joint venture with Nuclear Power Corporation for setting up a couple of Pumped Storage Projects allotted by Govt of Maharashtra.
What is your vision for Financial Year 2008-09?
In 2008-09, Tehri will be operational and construction of Koteshwar will be at its peak. We are going to ground two projects— Tehri PSP and Vishnugarh Pipalkoty, the later is funded by World Bank. Preliminary works for these two have already begun.
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