Calcutta: Sarda Energy and Minerals Limited (SEML) is planning to add hydroelectric capacity of more than 125MW over the next 2-3 years in Sikkim and Chhattisgarh.

At an industry estimate of around Rs 10 crore per megawatt, the investments on these projects could be over Rs 1,250 crore.

"We currently have two hydel projects in operation (a 24MW unit in Chhattisgarh operational since last July and a 5 MW unit at Uttarakhand) and there are more projects in the pipeline. We are setting up a large project in Sikkim and more units are coming up in Chhattisgarh over the next 2-3 years," SEML joint managing director Pankaj Sarda told The Telegraph.

The Chhattisgarh-based company executes and operate power projects through special purpose vehicles. One of the subsidiaries, Madhya Bharat Power Corporation Limited, is executing a 96MW (2x48) hydropower project near Gangtok in east Sikkim.

The financial closure for the project was achieved last year and Sarda said the project was expected to go on stream in another year.

Chhattisgarh Hydro Power LLP, another subsidiary, is working on a 24MW project on river Rehar in Chhattisgarh. The company has lined up more projects in the eastern state.

"We are positive on the growth prospects in the coming years, given the expansion lined up by the company," Sarda said.

The company also sells iron ore pellets, sponge iron, steel billet, ferro alloys and generates captive thermal power of around 161.5MW.

It registered a turnover of Rs 354 crore for the quarter ended December 2017, a year-on-year growth of 23 per cent.

Net profit during the quarter was Rs 34.4 crore compared with Rs 11.2 crore in the year-ago period.

Even as generation from hydro-electric power projects across the country was close to its target, data from the Central Electricity Authority shows that capacity addition during the 12th five year plan period was only 5479.02 MW against a target of 10897 MW.

The inherent complexities of hydro power - long gestation period, requirement of huge land area, large upfront capital and being site-specific - have further been aggravated by lack of finances and incentives, lack of transparency in allocation of projects, lack of coordination among agencies for grant of various clearances and in providing support to these projects. So far, rapid augmentation of thermal power generation capacities in the country has been compensating the slow pace of hydro power sector to some extent, the parliamentary standing committee on energy had noted in its report on the sector.