India Policy Task Force Priorities

US Hydropower is working to resolve market barriers with member companies who are actively developing projects in India.  US Hydropower has organized a public private sector partnership with Indian and U.S. government representatives, and the private sector, and plans to conduct an on-going policy effort for developers to discuss investment and development issues developers are currently facing.  In 1997, US Hydropower worked with US AID and successfully conducted two policy meetings for developers to address currency risk and credit issues.  The Bhandardara project was successfully financed in April 2000, and went on line July of 2001.  The project is the first internationally financed project on a private sector basis. 

Several other projects will follow in its wake, if we can continue an aggressive effort with the public private sector partnership.  We will focus on moving projects in the pipeline in several states, and have been asked to help make recommendations to encourage hydropower investment to several Indian government organizations at the state and central level.

US Hydropower members have already identified that creditworthiness, deadlines, and jurisdictional issues are some of the major barriers to project developers that will need to be addressed.  This partnership will also promote greenfield and modernization project priorities, and will help industry identify joint venture partners and other business opportunities for participants.  US Hydropower plans to work with US AID, World Bank, the U.S. Commercial Service, and US AEP on this effort, and expects to be able to resolve market barriers to allow near term financial closure on projects, and to encourage new projects and partnerships. 

Currently, there is minimal investment flow in India and therefore hydropower development activity is lagging and in serious jeopardy.  US Hydropower has proposed a Task Force on Hydropower Investment and believes that its organization is a critical step to ensure that common goals between all stakeholders, including policymakers and private sector, further dialogue and find resolution on market barriers.  US Hydropower is planning an event with the Government of Himachal Pradesh in March 2002, and anticipates that other state level task forces will be established.  US Hydropower also expects to coordinate key meetings in Delhi with the Ministry of Power and the Power Trading Corporation, and continues to discuss industry issues with local industry organizations and associations.

Special Project:  US Hydropower - India