The north Indian state of Haryana has approved a new policy in the non conventional energy sector. According to a state government source, the policy aims to bridge the gap between demand and supply of power in the state. Under the new policy, which will last until 2002, independent power producers generating energy from renewables sources will not be restricted in their generation capacity. Consortia and co-operatives will be eligible for setting up such projects. Interfacing, including transformers and high tension lines from point of generation to the State Electricity Board (SEB), will be maintained either by the operator or SEB. Depending on the generating capacity, the SEB will undertake the work at its own cost. The Haryana SEB (HSEB) will initially buy power at INR 0.0225/kWh. Banking of power with the utility -- for use during power shortages -- will be permitted for one year. Power generation from renewables for the generator's own use, as well as sale to the HSEB or a third party, will be exempt from electricity taxes.
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