Need For a Hydel Policy  

Hydro power is a renewable economic, non polluting and environmentally  benign source of energy.  Hydro power stations have inherent ability for instantaneous starting, stopping, load variations etc. and help in improving reliability of power system.  Hydro 

stations are the best choice for meeting the peak demand.   The generation cost is not only inflation free but reduces with time.   Hydroelectric projects have long useful life extending over 50 years and help in conserving  scarce fossil fuels. They also help in opening of avenues for development of remote and backward areas. Our country is endowed with enormous economically exploitable and viable hydro potential assessed to be about 84,000 MW at 60% load factor (1,48,700 MW installed capacity).  In addition, 6781.81 MW in terms of installed capacity from small, mini and micro hydel schemes have been assessed.  Also, 56 sites for pumped storage schemes with an aggregate installed capacity of 94,000 MW have been identified.  However, only 15% of the hydroelectric potential has been harnessed so far and 7% is under various stages of development.   Thus, 78% of the potential remains without any plan for exploitation. Despite hydroelectric projects being recognised as the most economic and preferred source of electricity, share of hydro power has been declining steadily since 1963.  The share of hydro power has been continuously declining during the last three decades.  The hydro share has declined from 44 per cent in 1970 to 25 per cent in 1998.  The ideal hydro thermal mix should be in the ratio of 40:60.  Because of an imbalance in the hydel thermal mix especially in the Eastern and Western regions, many thermal power stations are required to back down during off peak hours.  The capacity of the thermal plants cannot be fully utilised resulting in a loss of about 4 to 5 per cent in the plant load factor. Even if the share of hydro power is to be maintained at the existing level of 25 per cent, the capacity addition during the 9th and 10th Plan would work out to 23,000 MW. If the share were to be enhanced to 30 per cent, it would require a further addition of 10, 000 MW of hydro capacity.   The constraints which have affected hydro development are technical (difficult investigation, inadequacies in tunnelling methods), financial (deficiencies in providing long term financing), tariff related issues and managerial weaknesses (poor contract management).  The hydro projects are also affected by geological surprises (especially in the Himalayan region where underground tunnelling is required), inaccessibility of the area, problems due to delay in land acquisition, and resettlement of project affected families, law & order problem in militant infested areas.   

Objectives  

The programmed capacity addition from hydel projects during the 9th Plan is 9815 MW, of which Central Sector and State Sector will contribute 3455 MW and 5810 MW respectively and the balance 550 MW will be contributed by the Private Sector. Sanctioned and ongoing schemes unde implementation will enable a capacity addition of 6537 MW during the 10th Plan, of which 990 MW, 4498 MW and 1050 MW will be the contribution of Central, State and Private Sectors respectively.  In addition, 12 projects (5615 MW) have been identified for advance action in the 9th Plan for benefits in the  10th Plan. The Government of India has set the following objectives for accelerating the pace of hydro power development:-   

(i) Ensuring targeted capacity addition during 9th Plan :     

The 9th Plan programme envisages capacity addition of 9815 MW from hydel projects in the total capacity addition of 40245 MW.  The Central Sector hydel projects would contribute 3455 MW, State Sector would add 5810 MW and Private Sector 550 MW.  Keeping in view that the achievement in 8th Plan had been dismal, the Government is determined to ensure that no slippage is allowed to occur and the targeted capacity addition in the 9th Plan is achieved in full.   

(ii) Exploitation of vast hydroelectric potential at a faster pace:        

The Government would initiate advance action for taking up new hydro projects since the ongoing projects will contribute a very small percentage of the desired capacity addition envisioned for 10th Plan and beyond.  Towards this end, Government would take up for execution all the CEA cleared projects, and take steps to update and obtain clearances for pending DPRs.   Measures for vigorously starting  survey and investigations for new green field sites would also be implemented shortly.  In addition, Government is keen to restart and activate the hydro projects which are either languishing for want of funds or are remaining dormant due to unresolved inter-State issues.   

(iii) Promoting small and mini hydel projects   

Small and mini hydel potential can provide a solution for the energy problems in remote and hilly areas where extension of grid system is comparatively uneconomical and also along the canal systems having sufficient drops.  The small hydro potential could be developed economically by simple design of turbines, generators and the civil works. Small and mini hydel capacity aggregating to about 340 MW is in operation, and Government is determined to provide thrust for developing the assessed small hydel  potential at a faster pace henceforth.     

(iv) Strengthening the role of PSUs/SEBs for taking up new hydel projects:      

In view of the poor response of the private sector so far in hydro development which may persist for some more years, the involvement of public sector in hydel projects would not only have to continue but will also have to be enlarged.  There are categories of projects such as multi-purpose, projects involving inter-State issues, projects for peaking power and those involving rehabilitation and resettlement which may be taken up and implemented more easily in public sector.   Similarly, mega hydro projects in the North and North Eastern region would also have to be executed by CPSUs in case the State or the private sector is not in position to implement these projects.   

(v) Increasing private investment:     

Even though public sector organisations would play a greater role in the development of new schemes, this alone would not be adequate to develop the vast remaining hydro potential since it will require huge investments which are difficult to be supported from the budget/plan assistance in view of competing demands from the various sectors.  A greater private investment through IPPs and joint ventures would be encouraged in the coming years and required atmosphere, incentives and reliefs would be provided to stimulate and maintain a trend in this direction.