Speaking to mediapersons after inaugurating a workshop on Austrian hydel power construction methodology in the capital on Monday, Union power minister, P R Kumaramangalam said the announcement of the hydel policy along with policy initiatives for putting up mega power projects and the new liquid fuel policy would be made in the coming session of Parliament.

When asked whether the issue of counter-guarantees to mega hydel projects would be incorporated in the policy, he said, "proposals in this regard have come but his ministry has not discussed the matter at that level. It all depends on the project proposal, the offer and we may make up our mind then", he said.

However, Kumaramangalam, said he did not think counter-guarantees could solve the problem faced by the hydro powersector.

Earlier, addressing the conference, the minister stated that the minimum thermal-hydel ratio should be 40:60 as per international standards, while in India it stands at 25:75.

Unlike thermal power, it was difficult to convert risks in hydro power in financial terms. Until this was done, private funding to projects in the sector would not be overwhelming and the state would continue to play a major role in the area. Plan outlay for the hydro electric sector would be hiked as the country has taken care of funding for thermal power through participation by private sector, he said.

Describing hydro power as the biggest challenge faced by his ministry, he said work on the hydel project suffers a number of difficulties right from the beginning because of topographical complexities of the Himalayas. "Sometimes dam height inhibits the project, while at other times tunnel boring machine hits sand instead of rock more. Besides, topographical problems, the hydro project faces the wrath ofenvironmentalists. It was difficult to rationalise faith", added Kumaramangalam.

He said though the Union government would put more money into hydel projects during the Ninth Plan, the issue of delays and consequent escalation of costs cannot be resolved easily this way. To find a solution to the problems require conversion of risks involved in hydel projects in financial terms and limitation of risks.

The government has learnt how to handle independent power producers and lower costs in generation of thermal power pretty rapidly. However, it would take some time to do so in case of hydro power he said.

Addressing the gathering, the power secretary E A S Sarma said that despite huge hydro potential which exists in India, we utilise only 20 per cent of it.

The high risks involved in setting up of hydro projects along with the fact that these were long gestation projects, the progress in this sector has been comparatively very slow. Even the private sector was not forthcoming in financing hydel powergeneration because of the geological unknowns involving high risks.

Share of hydel to total power generation stands at 25 per cent at present and if this was to be maintained during the Ninth Plan, 21,000 mw of additional power would have to be generated from that source, Sharma said.

Today it has become almost impossible to set up hydro projects in the wake of protests by environmentalists. Sharma said the government is trying to expose Indian experts to various technologies in hydro power, including those from Austria.