Indian Hydro Power Projects Environmental Sciences Essay

India with the scheme to turn at the growing rate of 9 % per annum demands to run into its energy demands because the ability to prolong rapid growing depends critically on the handiness of energy. To prolong its 9 % growing India needs to increase its installed capacity by 227 GW by 2012 from bing 162 GW

The energy demand of the state in 2007-08 was 739,345 GWh of which merely 666,007 GWh was available, go forthing a deficit of 9.9 % . In the same period, top outing demand was 108,866 MW, of which extremum of merely 90,793MW could be met go forthing a deficit of 16.6 % . The entire energy demand increased at the rate of 7.1 % for the twelvemonth 2007-08 from predating twelvemonth. The entire energy supply increased at the rate of 6.65 % for the same twelvemonth. The peak demand increased at the rate of 8.1 % for the twelvemonth 2007-08 from predating twelvemonth and the peak demand which was supplied increased at 4.6 % for the same twelvemonth.

Though the hydro power has the best capableness to run into the top outing demand but still it does non bask the larger portion in the energy mix.

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The installed coevals capacity of hydro power undertakings as on October 2010 was 37,328 MW against the potency of 1, 48,000 MW of our six river basins. This shows that merely 25 % of the potency has been exploited. On the other manus our rival China shows his capableness by puting up “ Three gorges dam undertaking ” holding the capacity of 22 GW which is merely below our sum installed capacity and they were able to make in 17 old ages. The little hydro undertakings installed capacity is about 3600 MW against the potency of 15000 MW.

Benefits of hydropower undertakings

Hydropower is a renewable, economic, non polluting and environmentally benign beginning of energy.A It saves scarce dodo fuel resources of the state, which are non renewable. Hydropower undertakings have certain typical advantages over other beginnings of electricity coevals, as discussed below:

Technical Benefits:

Hydropower undertakings by and large have longer life than any other power works, it last form 50 to 100 old ages. Due to no rising prices cost of the fuel and less cost involved in coevals operation and care make it more economical and technically executable which provides low power cost in the long tally of the operations. The efficiency of the bring forthing equipment of hydro power is more than 95 % and the Plant burden factor is more than 60 % which gives hydro power more proficient benefits.

Environmental Benefits

Uses renewable and pollution free sourceA i.e H2O

Addition in Agriculture Productivity through development of irrigation and multipurpose strategies, holding coevals of electricity as one of the aims, wherever possible and executable.

Avoided Green House Gas ( GHG ) emanations from tantamount thermal and other fuel based power undertakings.

Involve big scale afforestation activities under assorted strategies like Compensatory Afforestation, Catchment Area Treatment, Green Belt Development, Voluntary Afforestation etc. which finally improve the environmental quality of the undertaking country.

Flood Mitigation through big storage dikes.

Beginning of Drinking Water

Social Benefits:

Handiness of electricity and the Human Development Index have a really high correlativity.

Hydro undertakings are a blessing to the society and the populationA in and around the undertakings. With enhanced employment chances, increased net incomes, enriched life manner and improved criterion of life, the people in these vicinities experience an economic and societal up liftment. Reservoir country is an ideal topographic point for diversion and beginning of eco-tourism publicity in the country. The reservoirs are besides used for advancing pisciculture. There are other direct benefits accruing from hydro undertakings and dikes such as increased H2O for improved irrigation, and imbibing H2O to small towns and people populating in and around the undertaking country.

CDM and Top outing Benefits:

Small Hydro Projects which are up to 25 MW are eligible for credits under the clean development mechanism ( CDM ) .

For Top outing demands hydro power is the best beginning of electricity as the hydro power undertakings can accomplish its full burden bring forthing capacity with in really few proceedingss.

Hydro Potential of India

Integrated Energy policy says that hydro power potency which can be economically exploited is 84,000MW at 60 % load factor but in add-on India has indentified 56 sites for wired storage strategies with an sum installed capacity of 94,000 MW and taking in history this capacity the sum harnessed capacity of hydro boulder clay day of the month histories to 20 % and non 25 % .

The little hydro potency of India is about 15000 MW. The Ministry of New and Renewable energy has created informations base for the possible sites and have come up with around 4800 prospective locations distributed in assorted provinces. MNRE believes that around 5000 MW of India ‘s potency is yet unidentified.

The 6 basins capacity which has been indentifies by CEA are:

Beginning CEA

The immense hydro power potency in the northeast part histories for around 40 % of the identified potency of India. This comes out to be about 60000MW.The king of beasts portion of this capacity is shared by Arunachal Pradesh which accounts to around 90 % of the north eastern capacity i.e. is besides to evacuate the power 50000 MW and this is highest for any other province in India. Almost 25000 MW of this capacity was awarded for development under 50,000MW enterprise.

Capacity Addition:

During the current twelvemonth program period ( 2007-20012 ) , new hydro capacities worth 3400MW have been added as on November 2009.Total Capacity under building is 13,500MW this screens 1437 MW of the entire capacity probably to be delivered beyond the Eleventh Plan.

The capacity under building shows that the private sector will contibute28.5 % of the new capacity coevals and the Central Sector will lend 62.3 % and remainder by the assorted provinces.

If we look at the over all scenario the private developers involvement in hydro sector has increased significantly due to the assorted inducements being offered to the developers through assorted attractive policy support which will be discussed further in the paper. Analyzing the current hydro capacity add-on mix the scenario is given in the figure.

The cardinal concern in power sector is that capacity add-on has non been commensurate with the addition in demand. In the ten percent Plan capacity add-on from hydro power was 7886 MW against 12,113 MW from Thermal ( Coal, gas and Diesel ) from which coal added capacity was 9630MW.

Maximum of the hydro power capacity add-on in 10th program came from the northern part and besides the 80 % of the sum installed capacity is provided chiefly by the few sates like Himachal Pradesh, Uttrakhand, Sikkim and Arunachal Pradesh.

Hydro power accounted for 20 % of the entire slippages in 10th program whereas thermic accounted much larger than hydro power but still in the 11th program the capacity add-on mark which was decided to be 78,000MW thermic histories 75 % of it and hydro power merely accounts to 21 % of it. The hydro power sector will besides be run intoing demand from the power which will be evacuated from Bhutan and Nepal. These non merely include the power coevals by Indian developers in Bhutan and Nepal but besides power emptying strategies.

Plan wise mark and accomplishments



Un biasing with hydro power

After the Electricity Act 2003 which de-licensed the coevals arm of power sector to convey in more installed capacity to run into the demand supply spread which has brought important reforms in the sector. The Hydro Power undertakings still have to acquire CEA clearances due to the critical issues of Inter State differences and safe dike design. The undertakings more than the cost of INR 2500 crores and above 100MW of capacity have to take the Techno-Economical clearances from the CEA and in some instances besides from the nodal bureau of the province concern, which once more delays the advancement because of the immense clip taken by the concerned authorization to make their work as there is no rigorous guidelines on the clip period of blessing of DPR.

Hydroelectric Undertakings are recognized as the most economic and preferable beginning of electricity, but still the portion of hydropower in the sum installed capacity inA India has been worsening steadily since 1963. The hydro portion has declined from 44 per centum in 1970 to 24 % in 1999. The ideal hydro-thermal mix should be in the ratio of 40:60 and present instability is mostly responsible for system instability ” ( Beginning: developer writes up ) .This worsening tendency of the hydro power portion in the energy mix is the country of high concern. The hydro power electricity in universe broad is considered to be renewable beginning and cheap in the long tally due to the less operational cost and no rising prices in fuel monetary values. On the other manus the thermic power may be inexpensive in footings of duty but in the long tally due to increase in the fuel monetary values due to high operating cost and the environment harm it does it is still being given more portion in the energy mix. Though it is of import but if compared with hydro, in last two back-to-back capacity add-on programs hydro merely histories for 20 % of entire capacity to be installed.

India ranks 5th in footings of exploitable hydro-potential on planetary scenario, but still the Government of India comes up with the add-on of 20 GW Jawaharlal Nehru National Solar Power Mission and non making plenty for hydro power. If we compare the duty of the solar power with hydro power it is INR is 18/unit against INR 2.50/unit of hydro power. This will once more increased the duties in India which are among the highest in the universe. These all issues need to taken attention of for the successful and optimum development of all resources.

Slow Advancement of Hydro Sector:

The issues hindering the growing of the hydro power sector are multiple. The grounds include the holds in sourcing works equipments, holds in carry throughing multiple clearance demands and deficiency of financess and payment security, undependable informations of hydrology available with CEA and geological hazards. These jobs are discussed further.

Contract Management Problems:

Each hydro power has its alone characteristics and the proficient jobs. The contract may hold clear commissariats on the risk-sharing agreements between the contractor and the proprietor in the event of unanticipated physical conditions or other contingencies. Some times the undertakings may necessitate different methodological analysiss for building which may non hold been figured out in get downing and therefore these clauses may be included in the contract so that the hazard is shared and the cost is non put on the consumers.

The finalisation of the contract paperss is really slow sometimes it even acquire finalized after the building has stared so in that instance any bad luck may take to the slow down of the work in advancement. The Developers needs to avoid the lowest command syndrome for the hydro power undertakings and maintain in head the trifle and the hazard direction program of the contractor. The developers should name advisers for al these issues and the range of work and the proficient specifications should be clearly defined.

Deficit of work force:

Deficit of work force for the undertaking executing is one of the major challenges faced by the industry. The deficit consequences from the big Numberss of the undertaking coming up in the sector. One of the serious issues is that people with the needed accomplishments are non frequently lament to relocate to remote locations where undertakings are by and large located.CPU are now join forcesing with preparation institutes to undertake the deficit of trained work force.

Procurement Problems:

Hydro undertakings are really alone in there design and proficient specifications unlike thermic power workss where about every thing is standardized now. The bring forthing equipments in the hydro power sector are ever tailor made they are different for different workss based on the design caput, discharge and energy. Therefore there is batch of holds in the procurance of the power equipments. The current capacity is autochthonal industries of the power equipment is non plenty to back up capacity add-on program this is another grounds and the most important for the holds in the procurance jobs.

As discussed above that the capacity add-on of hydro power undertakings was maximal from the northern and the eastern parts so the challenges involved for the procurance of power equipments is much more and the cost of the undertaking goes high which is once more transportation to the consumer due to the cost plus footing of ciphering the duty.

Deficit of Contractor ‘s Capacity:

There is a deficit of the contractors for hydro power in the industry. There are merely few major contractors and even they are non able to present as per their operating capacity. Besides there is lesser engagement of the civil contractors due to the high initial cost they have to face. The foreign contractors are besides doubting about the prevalent socio-economical and political conditions of the state.

Developers Concerns:

Developers of hydro power undertakings in India face several jobs that cause holds and increase in the costs. Some of the cardinal concerns are:

Offering Procedure:

Developers concern with the command procedure is the drawn-out procedure of command being followed at the province degree, by the clip the undertaking is awarded batch of involvement is loosed by the developers. Problem besides arises when the new authorities implements certain alterations which may do undertaking unviable. There is no duty based command for the allocation of the undertaking so the transparence still remains the inquiry grade.


Obtaining forest and environment clearances for undertakings frequently take a really long clip. Sometimes the province authorities may present the undertaking in the wildlife sanctuaries without doing the proper clearances which becomes the duty to acquire the clearances cause a great trade of holds in acquiring the clearances. All the clearances must me through a individual -window attack and in short periods of clip which finally reduces the long gestation periods. See Annex 1 for all the procedures in MoEF clearances.

Infrastructure jobs:

Due to the location of the undertakings in the widespread countries which does non hold proper substructure as in roads Bridgess. In that instance the developers have to construct the necessary substructure therefore increasing the initial cost but the debt to equity ratio has been fixed, now for the bigger undertakings where the cost is extremely the debt to equity ratio must be revised so that it is easy for the developers to set up the financess. Besides the power emptying is besides a large job particularly in the instance of Arunachal Pradesh.

Land Acquisition:

Local people create batch of jobs when the undertaking is in some rural countries. They demand really high monetary value for the private land they owned. If the authorities fixes these monetary values the jobs can be resolved. Besides for the land acquisition for the right of manner for the power emptying program it is really hard to cover with the people as they ask really high monetary values for the hard-on of the tower on their land.


The capital cost of the hydro power undertakings is really high and the debt to equity ratio ( 70:30 ) is fixed which should be made flexible because in instance of mega power undertakings the cost of the undertaking is really high so set uping 30 % of the equity from internal resources will be hard.

The fiscal activities have been significant that several Bankss have reached their sectoral exposure bound. The developers are looking for more Bankss to set up financess. This in term will increase the fiscal closing clip of the undertaking which will once more make batch fiscal and every bit good as immense holds in the meeting the power demand.

The Power Finance Company has to play a of import function in this field to procure the fiscal closings for developers and to run into the 40 % funding spread of power sector.

Policy Support for Hydro Power Undertakings:

When India started bring forthing electricity in 1897 the lone beginning available at that clip was hydro power. At the clip of independency the hydro accounted to around 37 % of the sum installed capacity which even went to 50 % in 1963.Scince so it has been worsening and to convey it to the optimal degree authorities has been coming up with policies to tackle the hydro capacity of the state.

Electricity act 2003:

The coevals arm of the Power sector was de-licensed and gave a model for the development of new capacity on competitory footing and regulators were responsible for the development of the sector and to pull the private investing in the sector by procuring both the consumer and the developers concern.

Mega Power Policy 1995:

It was amended on 2009 provides inducements for the development of the big hydro power undertakings for the accelerated development of the sector. It provides the financial grants for mega power undertakings which in instance of hydro power are more than 300MW for the provinces of J & A ; K, Sikkim, Arunachal Pradesh and the eastern provinces and more than 500 MW for the provinces other so mentioned earlier. The policy provides assorted financial inducements.

Zero Custom responsibility: There are no custom responsibilities to be paid for the power equipment if they are being imported which once more is looked down by the autochthonal industries because this does non established the degree playing field for the autochthonal makers.

Deemed Export benefits: It is being given to the domestic bidders for both public and private sector.

Pre-conditioning for availing the benefits: Goods required for puting up any mega power undertaking qualify for the above financial benefits after the undertaking is certified that:

I. The power buying province has granted full power to the regulative committees ‘ full power to find duties.

two. The power buying provinces undertake to transport out distribution reforms as laid down by the MoP

d. Income Tax benefits: In add-on, the income revenue enhancement vacation government is besides available.

Beginning: NTPC

Hydro Power 50,000MW Initiative, 2003:

Under this inaugural Central Electricity Authority identified the capacity add-on of 50000 MW and for which the Pre-Feasibility studies were to be made. 162 hydro undertakings were identified and their Pre-feasibility studies were to be made till 2004 and it was completed good in agenda this enterprise will be really helpful in the development of hydro power in the most fuel rich province Arunachal Pradesh whose merely 2 % of the capacity has been harnessed till now.

New Hydro Policy 2008:

It states nonsubjective of get the better ofing the jobs experienced with the duty based commands. This policy even leads to more rural country development plan. Its besides sets the aim to bring on the private investings by giving 15.5 % return on equity, Improve relocation and rehabilitation issues and to ease fiscal viability It besides provides 40 % of the power to be sold on the merchandiser footing which helps the developers faster recovery of their cost.

The Small Hydro undertakings:

Ministry of Non-Renewable Energy ( MNRE ) and for the accelerated executing of these undertakings MNRE provides many inducements to the Private investors. As the undertakings are little the economic systems of graduated table is denied so to pull the investings MNRE provides assorted inducements to the development of the little hydro undertakings. These inducements are given in assorted phases of the undertakings and those are:

Survey and Pre-Feasibility Report

Fixing of Detailed Project Report

Modernization and Renovation of old undertakings

Indian Renewable Energy Development Agency ( IREDA ) is the establishment set up in 1987.The intent of the establishment is to excite, advance, support and speed up an efficient, environmentally sustainable NRSE. The inducements and the fiscal support are given by IREDA to the developers. IREDA started its fiscal support to little hydro in the VII Five twelvemonth program.


The state is missing far behind in run intoing its energy demand and optimal use of its resources. The capacity add-ons programs of the sector has ever lacked behind due to the assorted concerns which have already have been covered. In the 11th program to run into the 100 % capacity add-on every twelvemonth the add-on needs to be of around 15000 MW but in the first twelvemonth of the program merely 9263 MW was added. The issues are truly critical and authorities should do the market more unfastened to the new investings and technological promotions. The turning concerns of Climate Change and Energy Security negotiations about tackling the domestic beginnings of energy firs so to import it and hydro is the best option and the reply to these both issues. The capacity add-on program for hydro power is non plenty as the beginning is the best for the peaking. The policy preparation should include the industry intercession for supplying the inputs to the authorities and assisting to travel in the right way. The executing of the policy remains another issue which could be answered if the regulators follow the strong disposal. The hydro power must be optimally exploited to accomplish the grid stableness and peaking demands.


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