Shimla, July 25 - Himachal Pradesh, which has a potential to generate 20,416 MW hydroelectric power, has decided to set up 50 new micro hydel projects with the help of small players.

'The government has identified 50 mini hydroelectric projects across the state ranging up to 5 MW. These will be allotted to small players,' State Energy Development Agency chief executive Ajay Bhandari told IANS here Saturday.

The projects up to 2 MW would be allotted only to the residents of Himachal Pradesh.

Under the state's amended power policy, it will get free power from all the allotted projects.

The fixed quota for projects up to 5 MW is 6 percent free power for the first 12 years, 15 percent for up to 30 years, and 24 percent for up to 40 years. After 40 years, the project will be handed over to the government.

To encourage small entrepreneurs, the government is not charging any upfront premium for these projects.