The document discusses the future of hydro power development in India. It notes that India has an identified hydro power potential of 145,320 MW but has only developed 40,195 MW so far, representing around 27.6% of its potential. Several challenges are hindering further development, including lengthy forest clearance processes, uncertainty around project approvals, issues evacuating power from remote areas, and high costs of land acquisition. The document calls for reforms like upfront forest clearances, restarting stalled projects, subsidies for infrastructure development, and clarifying policies around forest payments and land costs to boost hydro power development and meet India's energy needs.

1. Future of Hydro Power
Development in India
M M MADAN
President (Hydro Business)
Jindal Power Ltd

2. BASIN - WISE HYDRO POWER POTENTIAL
IN INDIA
2
BASIN / RIVER
Probable Installed
Capacity (MW)
Indus 33,028
Ganga 20,252
Central Indian Rivers 3,868
West Flowing Rivers 8,997
East Flowing Rivers 13,775
Brahmaputra 65,400
TOTAL 145,320

3. Region wise Hydro Potential Vs Installed Capacity
52263
8131
15890
10680
58356
145320
15995(30%)
7447(91%)
11398(72%)
4113 (38%) 1242 (2%)
40195.4
160000
140000
120000
100000
80000
60000
40000
20000
0
Northern Western Southern Eastern North-Eastern TOTAL
REGIONS
Identified Capacity Developed Capacity
Capacity ( in MW )
As on 28.02.2014

4. Hydro Power in India
• Presently, in India, the generating installed
capacity is only about 27.6% of hydropower
potential i.e. 40,195 MW.
• The percentage of Hydro with respect to Thermal
has come down from 45% in 1970 to 18 % in 2013.
• To have a balance in base load and peaking load it
is desirable to have an ideal Hydro : Thermal ratio
of 40:60.
• This ratio is required for efficient operation of all
types of plants.
4

5. 65.14
58.81
54.32
54.41
54.36
57
57.75
63.47
68.77
69.52
71.87
72.63
73.27
72.60
71.99
71.97
72.11
70.76
70.60
69.78
69.05
69.66
69.57
71.21
72.71
75.01
77.39
34.86
41.49
45.68
45.59
41.8
40.6
40.02
33.96
28.77
27.99
25.51
24.84
24.32
24.63
25.25
25.4
25.33
26.77
27.00
27.37
27.82
27.22
27.37
25.62
24.21
22.26
20.17
3.84
2.4
2.25
2.57
2.46
2.59
2.62
2.53
2.41
2.77
2.76
2.63
2.56
2.47
2.40
2.85
3.13
3.12
3.06
3.17
3.08
2.73
2.44
0
10
20
30
40
50
60
70
80
90
1st
2nd
3rd
3 Annuals
4th
5th
Annual
6th
7th
Annuals 91-92,92-93
8th
1997-98
1998-99
1999-2000
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
PERCENTAGE
PLAN
TREND OF CAPACITY ADDITION AS % OF TOTAL
THERMAL
HYDRO
NUCLEAR
The Widening Gap

6. Advantages vs Challenges in Hydro
Power Development
1. Although there are many advantages of Hydro Power
but the Challenges are creating all the advantages
into disadvantages.
2. The advantages and challenges have been discussed
many times at many forums and regularly but ground
level solutions are not implemented effectively.
3. I will mention only few major challenges which are
creating obstructions in the development process of
Hydro Power and Private developers are losing
confidence.
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7. 4. Forest clearance is a long and tedious process and
clearance is given after a lot of expenditure has
been incurred by the developer.
5. Uncertainty always remains as the project may be
rejected on the ground of of number of trees which
are likely to be felled.
6. Changes in the conditions of TOR for requiring
additional release of Environment Flow.
7. Stopping of under construction projects- for Example
Uttarakhand Hydro projects and Lower Subansiri
Hydro Power Projects.- lose of investors confidence.
7
Challenges in Hydro Power Development

8. 8. Lack of adequate infrastructure – roads, rail, river
ports for transportation of construction material and
power equipment to remote locations- specially in
Arunachal Pradesh.
9. Issues in Evacuation of power from remote generation
sites of Arunachal Pradesh.
10.Study of Carrying capacity and cumulative study of
River Basins after DRP approval.
11.Double payment of land cost- specially in Arunachal
Pradesh where there are no land records and
payment to locals as well as forest department is
made at very high rates.
12.Non declaration by state Govt about the project lying
in wild life sanctuary.
8
Challenges in Hydro Power Development

9. Land acquisition
• Consent of 80 per cent of landowners required in
case of land acquired by private companies and 70
per cent for land acquired under Public Private
Partnership (PPP) model for public purpose.
• Compensation up to four times the market value in
rural areas and twice in urban areas. (in Arunachal
Pradesh there is no reference of Market Value still
very high rates are taken as base.
• Mandatory Social Impact Analysis (SIA) to assess
nature of public interest and estimation of socio-economic
impact prior to acquisition.
9
Challenges in Hydro Power Development

10. The Way Forward
1. Two part tariff for Hydro power and Hydro
purchase Obligation to encourage Hydro Power
Development.
2. In Principal Forest Clearance must be given
during Feasibility stage so that there is no
uncertainty and money can be spent for the right
purpose.
3. Formula for deciding clearances based density of
trees in a particular forest specially in Ar pradesh.
4. Stalled projects must be started to gain
promoters confidence.
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11. 5. Political consensus to restart the Stalled
Projects.
6. Two key areas that need to be addressed to
promote hydro power development:
-Strengthen EIA follow-up and Social Impact
Assessment to strengthen public involvement.
7. Provide central subsidy for development of
roads, rail, river ports, transmission lines to cover
high initial tariffs from partial loading on
infrastructure.
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The Way Forward

12. 8. Removal of misunderstanding that Hydro
project contributed to Uttarakhand disaster.
9. Formulation of clear cut policies for forest
Payment and land payment in Ar P.
10. The fact that hydro projects help mitigate the fury
of floods can be gauged from the fact, that had
Tehri Dam not withheld 90 per cent of the flood
inflows during the June’3 floods, the Rishikesh
and Hardwar would have been washed away.
11. Therefore more storage projects to be built based
on the requirement and technical feasibility of the
area.
12
The Way Forward

13. THANK YOU !!!
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