In a bid to encourage the private sector to develop hydroelectric projects, the Centre has decided to modify its Hydro Power Policy. Announcing this, Union Power Minister Sushil Kumar Shinde said that the modification would give impetus to development of the hydro power projects by private investors in big way particularly in South India and North Eastern states.

Speaking at a seminar on the development of hydro power in India here on Friday, the Minister said that despite having enough potential, the tapping of resources by private sector is not taking place due to lack of incentives.

The arrangements would ensure that the power to allocate of projects remains with the state governments.

Scrutiny by the Regulator and Central Electricity Authority would ensure that projects are designed and built in the most optimal and economic manner.

The proposed incentives include exemption from tariff-based bidding and zero duty on imports.