He lamented that the share of hydropower had come down to 25 per cent of the total power generation and that the government hoped to increase it up to 31 per cent by the Tenth Plan. The main reason for slippage in the hydro power is due to huge investments and long gesatation period as compared to thermal projects, he pointed out.

Stating that the slump in hydrosector need be addressed, the minister said transparency and evaluation was a must. ''the government is tightening the administrative control of various projects,'' he added.

Kumaramangalam said the government had decided that projects upto 25 mws be treated as small and micro projects. Referring to imposition of generation tax by states, Kumaramangalam said the matter had to be resolved after chief ministers of all states met to sort out theissue.

In reply to a question, the minister said the sanctions imposed against India would have no immediate effect in the power sector. ``Multinational companies are coming forward for investment despite sanctions,'' he added.

Regarding Himachal Pradesh's 7.19 per cent claim in the project undertaken by the Bakra Beas management board under the punjab re-organisation act, he said a meeting of the concerned states would be called in the first week of septmber to sort out the issue.

Pointing out that the previous Himachal Pradesh government had moved the Supreme Court in this regard, Kumaramangalam said he appreciated the stand taken by current chief minister Prem Kumar Dhumal seeking an outside-the-court settlement of the issue.

Kumaramangalam promised all support to the Himachal Pradesh government for a study into viability of various projects. ``The Power Grid Corporation had assured making arrangements for transmission of power from the state,'' he added. Earlier, inaugurating a two-day nationalseminar here on ``hydro power strategies for speedy development'', Kumaramangalam said the hydel projects with dams had social fallouts regarding rehabilitation which was causing a serious setback in the coming up of such projects.

Presiding over the function, Dhumal said liberal grants should be given to the state governments which were engaged in preparing projects by undertaking detailed survey to explore the possibility of opening hydro electric schemes.

The documentation should be simplified and standard documents for award of bids should be prepared and circulated to hydel power-producing states. Procedures for obtaining clearances from the central electricity authority and environment ministry need be simplified and a time-frame be worked out for its issue, he added.

He said there was a need to extend the fixed tariff regime along with concessions which were applicable to projects up to 3 mw capacity to projects up to 20 mw capacity.

``The central public sector units are required to beencouraged to actively associate either with joint ventures or work on their own for undertaking some of the investigated projects in the hydro power-rich states,'' he observed.

Former union minister Sukh Ram, MLA, also spoke at the seminar organised by the state electricity board.