"The center is likely to introduce a national hydroelectricity policy soon to encourage private players in setting up hydel plants," said Sushil Kumar Shinde, minister for power.
Shinde, who laid the foundation stone for the construction of two 500 megawatt thermal power projects in Chennai, formerly Madras, told reporters the policy would focus on changing rules to raise production of hydel power in the country.
"I cannot give more details since Parliament is in the session. The country needs more thermal power plants," Shinde said.
He said only 30,000 MW of hydel power was being consumed in India while the capacity was 150,000 MW.
Shinde also announced two ultra-mega power projects for Tamil Nadu state, one in Cheyyur and the other in Marakkanam, of 4,000 MW capacity each, the Economic Times newspaper reported Thursday.
"The two power plants would use the Cheyyur port, which has the capability of handling 30,000 million tons," Shinde said.
The government short-listed Cheyyur as the location for the ultra-mega power projects, the minister said. He said his ministry would add Marakkanam to the list of projects and send a survey team to conduct formalities.