1) GUIDELINES FOR PRIVATE INVESTORS

(i) Any Private Investor such as Private Ltd. Company/Public Ltd. Company/Public Sector Undertakings/Partnership concern/Sole Proprietary/Himachalis/Co-operative Societies comprising of the bonafide Himachalis is eligible to apply for the investigation/execution of these Small Hydel Projects.

ii) The applications for the new Projects shall be received after every six months on the basis of advertisements issued by HIMURJA. These advertisements will include Self Identified Projects also. Those who have already applied on the basis of self identification need not apply again if they so desire.  Their applications shall be examined along with others in the respective block of six months.  HIMURJA shall give advertisements in Giriraj and in leading Newspapers. The applications shall be scrutinized by HIMURJA and approved by the Government. 

iii) As the potential sites have been identified on the basis of preliminary reconnaissance only, the interested Private Investors should, in their own interest, visit the potential sites, (which are essentially the rivulets/streams on which the small hydro Projects can be developed), for verifying various Project related parameters viz. discharge, head, water availability, habitation etc.  They shall also ensure that the Project components do not fall in the wild life sanctuaries, national parks, eco protection zones etc. and also do not interfere / overlap with the existing/ ongoing/ proposed Hydel Projects of HPSEB, Government of India  undertakings, Private Investors, before submitting their offers on the prescribed format.

iv)The application shall be accepted on the prescribed format and shall accompany with the, application fee & requisite documents as mentioned in the “check list of the documents to be enclosed” in application format, etc. The application shall include along with the application the information regarding, name of the stream/nallah, estimated capacity, assessed head and assessed design discharge, layout sketch of the Project which should show the elevations of the main components of the Project, names of the Projects already allotted upstream/downstream of the proposed site, if any etc.  Application for the same name of the Project already allotted upstream/ downstream can not be accepted at the proposed site. The Joint inspection by a team of officers of HIMURJA, HPSEB and other IPPs shall be carried out to ascertain the overlap, if any, with the existing Projects.

v)If IPP is interested to apply for more than one Project, separate application for each Project shall be submitted along with application fee.

vi)The application must be complete in all respects, supported with the requisite documents and accompanied with application fee of Rs. 5000/- in the shape of a bank draft   payable at Shimla drawn in favour of “Director HIMURJA”.  The application form is at Annex-I. The applications shall be assessed on the basis of various parameters viz. Financial Strength, Technical Strength & Project Development Experience of the Bidders.

vii) From the effective date of receiving the applications and after receiving the essential documents as specified in Para-viii (a) below, a simple letter of authorization to undertake further steps shall be issued by HIMURJA.

viii) Essential documents:-

a)In those streams & rivers where SHPs have been identified either by the IPPs or HIMURJA, the Government. shall obtain clearances from the concerned departments like Wild Life stating that the Project area is outside the Wild Life Park, Sanctuaries, Zoos etc., from I&PH & Revenue department(s) stating that the proposed Projects(s) does not infringe with the drinking and irrigation rights of the local inhabitants and of the ownership of traditional water mills i.e. Gharats, approval under the Himachal Pradesh Transfer of Land (Regulation) Act, 1968, in  the tribal areas, consent from the Gram Panchayat through Panchayat Secretary within one month’s time.  In case, no communication is received from the concerned Gram Panchayat including that of tribal areas within the stipulated period, it will be presumed that they have no objection in giving consent to such a proposal.  The Administrative Department shall monitor the progress of such reports in a time bound manner.

b)The IPP shall give an undertaking to the Fisheries Department of the local area that wherever feasible, rearing of fish shall be promoted by the IPP in consultation with the Fisheries Department in the Project area at the time of final implementation of the Project. 

c)In case of the bonafide Himachali Promoter Directors/cooperatives, a proof thereof shall be furnished to HIMURJA/ Government.

d)The IPP shall submit the Pre-feasibility Report (PFR) of the proposed Project along with the above mentioned reports.  

e)The IPPs shall also submit name with complete address, Tel. No./Fax No. etc. of the promoter Company and the associate companies.

f)Details with complete address, Tel. No./Fax No. etc. of the present Directors of the promoter Company and the associates companies.

g)Detail of the individual equity share holder(s) with complete address, Tel. No./Fax No. etc.

h)The IPP shall establish its corporate office in Himachal Pradesh after the allocation of the Project and the proof thereof.

ix)The Himachal Pradesh Government reserves the right to reject any or all offers without assigning any reason.

x)Allocation of marks to Himachalis would be as under:-

                  i)              Financial capability                            60 marks
                  ii)             Technical capability                           30 marks
                  iii)            Personal interaction                           10 marks

However, to qualify the financial capability, minimum assets (both movable & immovable)should not be less than Rs. 10.00 lacs.

xi) After the allotment of the Project site(s) the allottee firm shall fulfill the following pre requisite criteria:-

(a)  Furnishing of the Processing Fee (non-refundable) in favour of “Director, HIMURJA” payable at Shimla. The processing fee for  Himachali, Cooperative society/Company comprising of the  bonafide Himachalis shall be Rs. 25,000/- upto  2 MW and beyond  2.00 MW upto 5 MW @ Rs.25,000/- + Rs.10,000/- per MW for the capacity exceeding  2 MW. For others, the processing fee shall be Rs. 2.00 lac per Project.
        
              If an IPP enhances the capacity of already allotted Project after Techno Economic Clearance/ signing of IA then the IPP shall be required to furnish the processing fee afresh at the rate specified above.

b)Furnishing of Security charges in the shape of Bank Guarantee or Demand draft (refundable) in favour of “DIRECTOR HIMURJA” payable at Shimla. Security charges to be taken from the bonafide Himachali/ Cooperative society/Company comprising of the bonafide Himachalis shall be in favour of Director HIMURJA payable at Shimla which shall be as follows:-

(i)        Upto 2MW                               Rs. 50,000/- in shape of Bank Guarantee or                                                         Rs.  25,000/- in the shape of Demand Draft.

(ii)       Beyond 2MW upto 5 MW       Rs. 75,000/- in the shape of Bank Guarantee or                                                        Rs.35,000/- in the shape of Demand Draft.

In case of others, the security charges will be paid in cash or by way of demand draft @ Rs. 50,000/- per MW.

(c) A resolution from the Board of Directors shall be obtained to authorize one of the Director for signing application, MOU/IA and all other relevant papers etc.

xii)There are SHP sites up to 5.00 MW which stand cancelled due to non-seriousness of the developers and for which TEC already stands accorded. These Projects shall be considered for allotment after inviting fresh applications on six months basis and advertisements issued by HIMURJA.  HIMURJA shall give advertisements in Giriraj and in leading Newspapers. The applications shall be scrutinized by HIMURJA and approved by the Government. 

xiii)The allottee firm shall have to sign the MOU.  with the Government of Himachal Pradesh, within a stipulated date, the details of which shall be given in the allotment letter.

xiv)The up-front premium for SHPs above 2.00 MW and upto 5.00 MW shall be charged in the following manner and shall be deposited by the developer on the allotment of the Project and before signing of MOU:-

(A)          For new Projects:

a) Upfront premium is exempted for projects upto 2.00 MW. 

b) Rs. 45,000/- per MW above 2.00 MW and upto 5.00 MW with the ceiling of Rs. 75,000/- (Non-refundable) in shape of bank draft in favour of Director, HIMURJA, payable at Shimla.

(B)          For Projects where Detailed Project Reports (hereinafter referred to as “DPRs”) are ready and which were considered for allotment but cancelled after due consideration:

Projects upto 5-.00 MW capacity:                    Rs. 10,000/- (fixed) +  cost of DPR
as per norms of Ministry of Non Conventional Energy Sources (hereinafter referred to as MNES)

xv) Upfront premium, processing charges and other security deposits shall not form part of the Project cost, which shall be borne by the developer out of his own source of income.

xvi)If the applicant does not take effective steps to undertake survey and investigation within a period of three months from the date of MOU and after finding the site feasible, does not prepare DPR after incorporating discharge data for two lean seasons, the MOU shall be automatically terminated (except to force majeure conditions) after forfeiting the bank guarantee and the site will be allotted to some other applicant.

xvii) The Private Investors shall have to stick to the time schedule for the investigations of the Project and submission of the DPR. They shall have to submit Bar Chart/ Critical Path Method/Project Evaluation Review Technique or any other modern techniques in this respect to HIMURJA for scrutiny and monitoring.   The progress achieved in this regard shall be reviewed by a committee constituted by the Himachal Pradesh Government for the purpose on quarterly basis. In case of default, the Himachal Pradesh Government shall have the right to cancel the MOU, forfeit the security and allot the Project for further investigations etc. to any other party or take it over itself without paying any compensation to the Private Investor.

xviii) The Private Investor shall prepare DPRs and submit the same within a period of 24 months from the date of signing of the MOU, which shall be accorded Techno-Economic-Clearance (TEC) by a committee to be constituted by the Himachal Pradesh Government before signing of Implementation Agreement (IA).

xix) After the DPRs are submitted, the same shall be examined/approved by Himachal Pradesh Government as may be necessary. Also the Government reserves the rights to modify, delete or add any of the conditions, criteria, at its own discretion and shall be at liberty to cancel the application, if at a later stage it is found that some information has been suppressed or false information has been supplied by the IPPs about the Project and the firm.

xx)After the DPR is found satisfactory and Techno-economic clearance (TEC) is accorded, the Private Investor (after he completes the pre-requisites) will be called for signing of Implementation Agreement with Himachal Pradesh Government, and Power Purchase Agreement (PPA) with HPSEB.

xxi)The Government of Himachal Pradesh shall sign the Implementation Agreement (IA).  with the Developer within a period of 30 months from the date of signing of MOU.

xxii)Any difference and/or disputes arising at any time between the parties out of the MOU/IA or interpretation thereof shall be endeavored to be resolved by the parties hereto by mutual negotiations, failing which the matter shall be referred to the Arbitrator to be appointed as per the provisions of the Arbitration & Conciliation Act, 1996. However, all disputes shall be settled within the jurisdiction of Courts of Himachal Pradesh

xxiii)The IPPs shall be required to obtain all the statutory/non statutory final clearances from the departments viz. Forest, I&PH, HPPWD, Fisheries, Pollution Control Board, Wild Life, Revenue etc, after paying the prescribed fee fixed by these departments, necessary for the implementation of the Project(s) and commence the construction work within the time frame specified in the Implementation Agreement i.e. within six months of signing of the same, failing which the agreement automatically shall stand cancelled. However, extension in this period, which is not due to force majeure reasons, may be allowed by levying an extension fee of Rs. 10,000/- per MW per month and maximum extension in this case shall be up to six months only and in case of established force majeure conditions up to six months without extension fees subject to the approval by the Government.

xxiv) The Private Investor shall pay all taxes and duties or other levies etc. to the Government of India/Himachal Pradesh Government as per the statutory rules in force from time to time.

xxv)After the financial closure, within the time period of six months specified in the Implementation Agreement, the developers shall submit a copy of the documents submitted to the financial institutions/Banks along with a copy of the loan sanctioned. HIMURJA shall scrutinize the names of promoters/Directors vis-a-vis such names which were there in the Memorandum of Article / Society registration/ Co-operative Society registration/ Partnership deed etc.

xxvi) The private investor shall undertake the implementation of the Project keeping in view all stipulated quality control measures as well as safety standards and the physical as well as financial parameters (with particular reference to the quantities of various  items as well as the associated costs thereof  etc.) of the approved DPR. The Private Investor shall allow access to the authorized representative(s) of the Himachal Pradesh Government/HPSEB/ any other Agency authorized by Himachal Pradesh Government to all locations of the Project to ensure compliance in this respect.

xxvii) The incentives/concessions offered by the MNES/Himachal Pradesh Government would be applicable for all small hydel Projects up to 5.00 MW. The final decision of the actual capacity of the Project shall rest with the Himachal Pradesh Government.

xxviii)Any change in the name and consortium of the Company shall not be allowed from the date of signing of the MOU except as allowed against clauses   xxix & xxx .  It shall be mandatory for an IPP to submit an affidavit stating therein that no change in consortium and name of directors/ promoters have been made. In case of default on the part of IPP, allotted Projects shall be liable for cancellation, except the IPP follows the provisions laid down in clauses   xxixi & xxx. and submit their request and other necessary documents required for effecting any change in the name and consortium of the project.  

xxix)The Government of Himachal Pradesh may consider the request of IPP for changing the name of Company or consortium.

xxx)  In case of bonafide Himachalis to whom Projects upto 5.00 MW capacity is allotted,   the Government may consider the request of promoters to sell equity shares to the bonafide Himachalis who have been living in Himachal Pradesh from generation to generation.   The Promoter(s) shall be allowed to sublet/transfer its right by way of merger, by way of change of management, by way of Power of Attorney, by transfer, lease, mortgage or any other such possible means accrued under the Memorandum of Understanding (MOU)/Implementation Agreement (IA) to any other Himachalies living in Himachal Pradesh from generation to generation or cooperative societies comprising of such Himachalis at any stage i.e. before and after commissioning of the Project so as to facilitate the execution of the project by taking technical or financial support from Cooperatives, Associations, NGOs, Companies, Individuals, Himachalis who have technical or financial means available to support the project(s).  

xxxi)In case of augmentation of capacity of already commissioned Projects by an IPP following capacity addition charges shall be levied, before according the approval by the Government:-

a)            0.50 MW and below                            Rs. 1.00 lacs
b)            Above 0.50 MW to 1.0MW                Rs. 2.00 lacs
c)            Above 1 MW                                       Rs. 5.00 lacs per MW
            
Other charges such as processing fee, security deposits as specified against in clause ( xi) (a) & (b) shall be payable by the  IPP in addition to above charges.

xxxii) The IPPs shall carry out the Environmental Impact Assessment (EIA) studies. The Developer shall be required to strictly adhere to the stipulations put forth by the authorities while issuing forest, wildlife, environmental and aquatic life clearances etc.

xxxiii) The Company, ‘if ROR Project’ shall ensure minimum flow of 15% water immediately downstream of the diversion structure of the Project all the times including lean seasons from November to March, keeping in mind the serious concern of the State Govt. on account of its fragile ecology & environment and also to address issues concerning riparian rights, drinking water, health, aquatic life, wild life, fisheries, silt and even to owner the sensitive religious issues like cremation and other religious rites etc. on the river banks.

xxxiv)The provision under “The Himachal Pradesh Transfer of land (Regulation) Act, 1968 in Tribal Areas shall be adhered to.

xxxv)The land, whether the private or Government except for permanent structures relating to the Project such as water conductor system, power house building, switchyard area etc. shall be taken only on lease basis at the rates approved by the Government for the agreement period. The Government shall acquire the land for the permanent structures by invoking the emergency clauses under the Land Acquisition Act, 1894 in order to expedite the execution of Projects.

xxxvi)The IPP shall inform the local Police Station and the Labour Officer about the details of the Labourers and other work force engaged who are both from within the State, country or outside the country, regularly.

xxxvii)The Company shall provide minimum 70% employment to the bonafide Himachalis whose names are registered on live register of any employment exchange located in the State of Himachal Pradesh, in respect of all the unskilled/skilled staff and other non –executives as may be required for execution, operation and maintenance of the Project. Through the local Employment Exchanges or from other than such live Register from anywhere within the state or outside the state, who are bonafide Himachalis or through the central Emplyment cell at Shimla. The  IPPs shall be required to provide mandatory employment related information to the Labour Department of the Himachal Pradesh Government on the lines of instruction issued by the Government within one month of singing of the IA and thereafter on monthly basis

xxxviii)The Company shall build such infrastructure development works in the vicinity of the Project area that may be essentially required for the benefit of local population. The expenditure on such works shall be incurred by the Company to the tune of 1% of the Project cost. These development works may be mutually decided with the local authorities.

xxxix)  If the aggregate capacity of the Projects being developed in the cascade exceeds 5 MW then the expenditure on such works shall be 1.5 % of the total Project cost.

(xl)      The Electricity Act, 2003 and the National Electricity Policy of 2005 provides for  “License free generation and distribution in rural areas, open access in distribution system, stand alone system/Non-Conventional/Renewable Resources for generation and distribution. Distribution licensee shall be free to undertake generation and generating Company shall be free to undertake distribution and more importantly thrust has been laid to complete rural electrification and provide for management of rural distribution by Panchayats, Cooperative Societies, Non-Governmental Organizations, Franchisees etc. The IPPs can take the benefit of such schemes.

(xli)       To promote “Off – Grid solutions” like the SHPs in the rural areas by providing evacuation links from the SHP to the State Grid, Government of Himachal Pradesh shall endeavour to provide Grid connectivity to the Small HEPs by utilizing the provisions namely the Rural Electricity Distribution Backbone (REDB) and the Decentralized Distribution Generation & Supply (DDG) contained in the Rajiv Gandhi Gramin Vidyutikaran Yojna (RGGVY).

(xlii)        While protecting the ownership and use rights of existing Water Mills, the Government of Himachal Pradesh shall encourage the up-gradation of existing Water Mills and installation of the new Water Mills both for mechanical and electrical application by the bonafide Himachalis. For this purpose, the Government of Himachal Pradesh shall provide technical and financial assistance, besides, availing the corresponding subsidies/incentives notified by MNES.  The beneficiaries shall include the bonafide Himachalis of the area because they are well conversant with the local terrain, topography and other socio-economic conditions of the people. First preference shall be given only to the owners of sites of such traditional Gharats, then the village, then the district, then the rest. The owners of the existing Water Mills who are willing to install new Water Mills at the potential sites shall have to obtain necessary approvals from the competent authorities as per the requirements of the scheme. In case of Water Mills providing the electrical and mechanical output, the power so generated shall be utilized by the owner for his own captive use or otherwise as permitted by the law.  However, such developers are exempted from the payment of 1% development charges for local areas.