NATIONAL POLICY FOR HYDRO POWER DEVELOPMENT

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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.


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 under 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.


Policy Instruments
To achieve the above stated objectives for faster development of hydro potential, the Government proposes to take the following steps and measures: -
3.1 Funding
All the ongoing Central Sector hydroelectric projects namely Nathpa Jhakri (1500 MW), Tehri Stage I (1000 MW), Ranganadi Stage I (405 MW), Dulhasti (390 MW), Dhauliganga (280 MW), Doyang (75 MW) and Rangit (60 MW) would be provided with full budgetary support till completion. Government of India will also provide budgetary support for the new projects to be taken up by the CPSUs during the 9th Plan. The actual utilisation of the funds on the ongoing Central Sector hydel projects has been Rs.1616.87 crores in 1997-98 and the budget provision for 1998-99 has been increased to Rs.2070 crores. Therefore the remaining three years of the 9th Plan would require about Rs.5896 crores on the ongoing Central Sector projects (excluding NEC projects). Having regard to the large capacity addition envisaged in the State Sector (5810 MW) it is necessary to (a) provide a mechanism for funding hydro projects by earmarking funds in the plan allocation of the State Governments by the Planning Commission; and (b) organising supplementary funding of hydel projects where more than 50 per cent of the expenditure has already been incurred.