1. Submitted by :-
Ashish Porwal
Anuj Saini
Nitin Jain
Shubhra Bhugra
Sonali Gambhir
4/15/2013

2. Introduction
 Hydropower is a renewable, non-polluting and environment
friendly source of energy.
 Oldest energy technique known to mankind for conversion
of mechanical energy into electrical energy.
 Contributes around 22% of the world electricity supply
generated.
 Maximum benefits in minimum time.
 Offers the most fastest economical means to enhance
power supply, improve living standards, stimulate industrial
growth and enhance agriculture with the least
environmental impact and without heavy transmission
losses .
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 Due to less transmission losses there is a reduction in

3. HISTORY OF HYDROPOWER
 The first hydroelectric power dam in the world was built in
Appleton, Wisconsin in 1882.
 In India, Jamshed ji Tata built the first hydroelectric power
dam in the Western Ghats of Maharashtra in the early
1900s to supply power to Bombay’s Cotton and Textile
Mills.
 He took the British Government’s permission to build dams,
namely the Andhra, Sirowata, Valvan and Mulshi hydel
dams in the Western Ghats to generate electricity using
high rainfalls in the hills as storage.
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4. Hydropower In India
 With the liberalization of the economy, the Government of
India has been encouraging and invited private sector for
investment in the power sector.
 A conducive policy environment has been created by
modifying the Electricity Act. The new Electricity Act-2003
deals with the laws relating to generation, transmission,
distribution, trading and use of electricity.
 The Act has specific provisions for the promotion of
renewable energy including hydropower and cogeneration.
It has been made mandatory that every state regulatory
commission would specify a percentage of electricity to be
purchased from renewable by a distribution license
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5. HYDROELECTRIC PROJECTS DEVELOPMENT:
CHALLENGES
1) Enhancing the level of energy consumption, particularly in
less developed and developing countries, is a global challenge.
(20% of world population living in industrialized countries
consume 60% of energy and remaining 80% of population have
to manage within 40% of total energy.
Result  wide disparities between the standard of living
and quality of life of high energy consuming countries on the
one hand and those who do not have the opportunities of
adequate access to energy on the other.
Decision Should be taken development of different sources
of energy and increase in its consumption has become a priority
agenda of all the developing countries.
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6. 2) Various countries have adopted their own strategies to provide energy
to their people during last 30 years .
Hydroelectric power generation  reduced from 21% in 1973
to less than 17% in 2000.
Coal based generation increased from 38% to 39%
Gas increased substantially from 12% to 17.4%
Nuclear  rise from 3.3% to 16.9
Conclusion Special efforts are required to develop
Hydroelectric capacities
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7. 3)Low Exploitation of Hydro Potential
Inspite of hydroelectric power requiring a clean energy
generation process, exploitation of Hydroelectric
potential in various countries has been rather on a
lower side.
(MW)
COUNTRY POTENTIAL INSTALLED PERCENTAGE
Norway 47,000 27,360 58
Canada 160,000 65,378 48
Brazil 170,000 52,427 31
China 310,000 56,000 18
India 150,000 27,000 18
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8. 4)Declining proportion of Hydro Capacity
In the last 30 years, the proportion of hydroelectric capacity
in the Indian power system has considerably reduced.
Dropped from46% in 1970 to 40% in 1980, 29% in 1990
and now 25% in 2003.
Reasons:-
 Indian power supply industry has always experienced
the situation of shortages both in energy and peaking
requirements. To tide over the shortage in shortest
possible time, more dependence was placed on
sources of power generation with shorter gestation
period.
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9. 5)Thrust on Hydro Power
In the recent years, the Govt. of India decided to support in the
financial allocation and helps that the Hydroelectric projects not only
get right priorities but also contribute in an increased way to the
future capacity addition programs of the country.
The thrust on hydroelectric development is based on the following
considerations:
a) Hydroelectric involves a clean process of power generation.
b) Since it does not suffer from the limitation of inflation on account
of fuel consumption, in the long run, it is the most cost-effective
option for power supply.
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10.  Indian power supply system has a peculiar limitation of huge variation
between peak and off peak requirements. Management of peak load in an
effective manner could be conveniently handled through availability of
hydroelectric support. The system at present does suffer from large frequency
variations. Better hydro support could address this problem better.
 Locations of Hydroelectric projects in India are also in areas which need
substantial support for their economic development.
 In an integrated Hydroelectric project – there are many such projects – the
schemes involve not only supply of electricity but also provision of drinking
water and irrigation. Hydroelectric projects, in many cases, do have the ability
to mitigate these problems.
 Flood control is also an issue and quite often a challenge. Integrated
hydroelectric projects could adequately address this concern.
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11. Govt. of India Initiative on Hydro Power
Development
 Additional budgetary financial support for ongoing and new
hydro projects under Central Public Sector Undertakings.
 Advance action for capacity addition – 10 year ahead of
execution
 Emphasis on quality of survey & investigations
 Resolution of inter-state issues on sharing of water and power.
 Renovation, Modernization & Uprating of existing hydro stations
 Promoting small and mini hydel projects – 25 MW and below
now fall into category of “non-conventional” qualifying for
benefits.
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12.  Realistic estimates of completion cost considering new development
on geological front during execution.
 Promoting hydel projects in joint venture
 Govt. support for land acquisition, resettlement and rehabilitation,
catchment area development, etc.
 The Central Electricity Regulatory Commission has approved 5%
hydro development surcharge on annual fixed charges for central
hydro power generation.
 Simplified procedures for clearances by Central Electricity Authority;
Electricity Act 2003 further liberalizes this.
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13. National policy on Hydropower in
India
 Aim  To accelerate the development of Hydropower
 Introduced In 1998
 Introduced by  Ministry of Power (MoP) and
Government of India (GoI)
 With Central, State and Private hydropower projects
contributing 3455 MW, 5810 and 550 MW respectively,
the GoI aims to reach the total capacity of 9815 MW
during the ninth plan. (The XIth Plan aims capacity
addition of 18781 MW in the hydropower sector)
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14. Aim of Government of India :-
Aims to realize 100% hydropower potential of the country by year 2025-26.
These objectives have been developed in response to the following
constraints:
 Technical, including difficult investigation, inadequacies in tunneling
methods)
 Financial (deficiencies in providing long term finance)
 Tariff related issues
 Managerial weakness (poor contract management)
 Geological surprises (especially in the Himalayan region where
underground tunneling is required)
 Inaccessibility of the area
 Problems due to delay in land acquisition and resettlement of project
affected families 4/15/2013
 Law and order problem in militant infested areas.

15. Current issues with Hydropower
in India
1)Technical issues:
 To expedite early execution of hydro projects,
bankable Detailed Project Report (DPR) based on detailed
survey should be prepared to avoid geological uncertainties.
 Survey & investigation and analysis of geological, geo-
morphological, geo-electrical, hydrological data etc. should
be done at the time of preparation of a DPR itself in order to
minimize the impact of risks.
 The quality of DPRs should be of high standard which should
infuse confidence in the national/international developers to
take up the execution of projects without loosing time in
rechecks etc.
 At the same time, contract monitoring as distinct from project
monitoring should be emphasized and land acquisition and
infrastructure development be settled and completed before
the start of the project. 4/15/2013

16. 2)Infrastructural issues
 There is a need to setup single window clearance for hydro
projects so that a project is cleared without many hassles.
 Various authorities such as the Central Electricity Authority
(CEA), the Ministry of Finance, Ministry of Environment and
Forests, etc. are involved in the appraisal of a hydro power
project before it is certified for development. So it will be
desirable to have a single window dispensation/authority .
 The hydro projects which involve lesser risk element and entail
lesser capital investment can be considered for development in
the Private Sector.
 Public Sector can take up (a) Multi purpose Projects (b) Projects
Involving inter-State issues and in inter-State river systems, (c)
Projects involving cooperation with neighboring countries and (d)
Projects for complementary peaking with regional benefits (e)
Projects in the North-Eastern Region etc.
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17. 3)Financial issues
 There is also a need to off-load indirect cost
components on hydro project.
 Many hydro projects are located in troubled areas and
infested by militancy and terrorist activities. There is
an urgent need to amend the present policy of the
Government in regard to charging the entire security
expenditure from concept and until commissioning -
on the project cost.
 The cost of access roads should not be included in
the project cost, as development of hydro projects
triggers economic and commercial activities around
the project site and results in economic benefit to 4/15/2013
the
State.

18. Major responses
 Impact on Environment: Hydroelectric projects do create
environmental issues emanating from sub-emergence of
large areas also involving forest.
 Rehabilitation & Resettlement (R&R) of Project Affected
People (PAP) is another major issue affecting the smooth
execution of Hydroelectric projects particularly where in
submergence areas, the number of project affected people
are large.
 Safety of dams
 Construction time is another area of concern, which needs
to be compressed. Large projects have taken inordinately
long time. 4/15/2013

19.  Complexity in development of Hydroelectric projects,
particularly large ones, emanating from dam height,
submergence, ramification of submergence, dam
safety, drinking water schemes, irrigation,
infrastructure etc., the process of clearances
obviously gets linked with multiple agencies and
authorities. Short cuts could create problems.
 Communication with press, media and people at
large to reduce the communication gaps on merits of
hydro-projects and migration of people is another
area of challenge which is being addressed.
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20. CONCLUSION
 In order to achieve a growth rate of 7-8 % as envisaged
in National policy of India ,it is also required to tap all the
small Hydro Power potential of the country.
 Hydro Power Project sector, especially in view of the fact
that Large Hydro power projects involve huge capital
investment and long gestation period which private
partners do not afford to bear.
 The utilization of small Hydro Power Potential is
especially required in all states where the utilized
potential is very low like in MP and therefore optimum
utilization of the same may set up an stepping up stone
for achieving self sufficiency in power sector in country.
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21. Recommendations
 Energy Policy Framework: Governments setting national policy
and guidelines for all generation options.
 Decision-making Process: Agencies establishing equitable,
credible and effective guidelines for environmental assessment
rules and process.
 Comparison of Hydropower Project Alternatives: Developers
applying guidelines for project selection, design and operation.
 Improving Environmental Management of Hydropower Plants:
Operators ensuring proper social and environmental
management practice.
 Sharing Benefits with Local Communities: Owners providing
equitable transfers across project life cycle. 4/15/2013

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