Hydro-Electric Projects face a number of hurdles, both natural and man-made. The major natural hurdles encountered in hydro-electric power projects are natural calamities (such as earthquake, flood), geological uncertainties, difficult terrain, land slide, poor accessibility, etc.

The examples of man-made hurdles are land acquisition problems, local agitations / resistance including Rehabilitation & Resettlement issues, delay in various statutory clearances viz. Environment and Forest Clearances, Contractual problems, Funds constraints with Developers / Contractors, Inter-State disputes, Court / various Tribunals such as National Green Tribunal (NGT) cases, etc.

The following steps have been taken by the Government to address these hurdles:

  • Central Electricity Authority (CEA) monitors the progress of under construction power projects through frequent site visits and interaction with the developers and equipment suppliers. CEA holds review meetings periodically with the developers and other stakeholders to identify and resolve issues critical for commissioning of Projects.

  • Regular reviews are also undertaken in Ministry of Power to identify the constraints areas and facilitate faster resolution of inter-ministerial and other outstanding issues.

  • A Power Project Monitoring Panel (PPMP), set up by the Ministry of Power, independently monitors the progress of the Projects.

  • Progress of selected Projects are also reviewed by the Hon’ble Prime Minister through the PRAGATI meetings, as and when required.

  • In case of Central Public Sector Undertakings (CPSUs), the project implementation parameters / milestones are incorporated in the MoU signed every year between respective CPSUs and MoP and the same are monitored during the Quarterly Performance Review (QPR) meetings of CPSUs and other meetings held in MoP/ CEA.

  • Elaborated guidelines dated 8 November, 2019 have been issued by Government of India to avoid time and cost overrun in Hydro Electric Projects.

Following steps have been taken by the Government to enhance production capacity of Hydro-Electric Projects:

  1. Renovation & Modernisation, Uprating and Life Extension (RMU&LE) of the existing old Hydro-Electric Projects to augment (uprating) capacity addition in the country.

  2. Government has taken several policy initiatives in the past to give a boost to hydro power development in the country viz., National Electricity Policy 2005, Hydro Power Policy 2008, Tariff Policy, 2016, etc.

  3. Govt. of India in March, 2019 approved a number of measures for promoting hydropower in the country and improving viability of the Sector. These include:

    1. Declaring Large Hydro Power (LHPs) (> 25 MW projects) as Renewable Energy source.

    2. Hydro Purchase Obligation

    3. Tariff rationalization measures

    4. Budgetary Support for Flood Moderation/Storage Hydro Electric Projects (HEPs).

    5. Budgetary Support towards Cost of Enabling Infrastructure, i.e. roads/bridges.