The state government has also drawn up a five-year plan for carrying out survey and investigation works and preparation of detailed project reports for generating another 4000 mw.

Him Urja, the state government's nodal agency for small hydro power projects, has advertised for 138 schemes out of which memorandums of understanding have been signed by private companies for 85 projects totalling 104 mw.

It has also advertised for 319 more potential sites with an aggregate installed capacity of about 475 mw.

Speaking at a session on the state, organised by the PHD Chamber of Commerce and Industry on Tuesday, chief minister Prem Kumar Dhumal said, "the vast hydel power potential available in thestate is a precious resource. The government is committed to bring about a radical change in the power policy so as to speed up the process of development of hydro projects."

He felt the adoption of MoU route for projects up to 100 mw would help in implementing small and medium projects in the private sector. The small hydro potential in the state in the form of mini/micro and small hydro projects is estimated to be in excess of 500 mw.

He, however warned entrepreneurs against cancellation of MoUs in case the projects were delayed or failed to take off. The chief minister claimed it was due to the state government efforts that the Centre announced a national hydro power policy "which takes care of many apprehension and problems that the private investors were nursing".

The hydro-electric potential of the state is estimated to be more than 21000 mw, which is one-fourth of the total hydro potential of the country.

However, out of this only 17 per cent has been financed so far. According to A KGoswami, chief secretary, Himachal Pradesh, Rs 1 lakh crore investment was needed to tap the hydel potential which could come only through private sector participation.

Phdcci president Ashok Khanna made a case for setting up of a specialised infrastructure development company with participation from the government, financial institutions, private investors and industry.

The industry chamber suggested setting up of a hydel power generation company by the state government for developing two major projects initially. Private partners and financial institutions could be partners in it.

It also favoured setting up of a state-level power regulatory commission with the primary function of balancing the interest of the state, consumers and investors, regulate tariff, adjudicate on power matters and advise the state government.

Single window clearance

Taking a cue from single table clearance promised by Uttar Pradesh chief minister Kalyan Singh, Himachal Pradesh chief minister Prem Kumar Dhumalassured prospective investors on Tuesday that a single officer would take care of all the clearances required for setting up industry in the state.

The new industrial policy recently announced by the state government welcomes projects, which generate employment, add revenue to the state and are non-polluting in character and based on gainful exploitation of local resources.

Considering the problems relating to transportation of bulk commodities, the state government would give priority to low volume and high value industries like information technology.