WSHPDR_2013_Final_Report-updated_version

to set up projects in areas which give the maximum
advantage in terms of capacity utilization.
India has developed small hydropower on its existing
irrigation dams and irrigation canal falls. From 1997 to
2008, about 500 MW have been developed on these
existing facilities and are the first choice for
development by IPPs. 5
Year-wise capacity addition from small hydropower
projects is shown in figure 3. A target of adding
about 2,100 MW during the 12 th Plan (2012 to
2017) has been fixed.
To make small hydropower cost effective and reliable,
31 supporting documents (standards, guidelines and
manuals) covering the entire range of small
hydropower activities have been developed by the
Indian Institute of Technology (IIT) Roorkee, through a
consultative process and are available for the use of
developers, manufactures, consultants, regulators and
others. 6
Legislation on small hydropower
In August 1998 and thereafter in November 2008, the
Government of India announced a Policy on Hydro
Power Development. People adversely affected by
hydropower have been made long term beneficiary
stakeholders in the hydropower projects by way of
one per cent of free power on recurring basis with a
matching one per cent support from State
government for local area development, as well as
annual cash benefits, ensuring a regular stream of
benefits.
To enable the project developer in the hydropower
sector achieve a reasonable and quick return on
investment, merchant sale of up to a maximum of 40
per cent of the saleable energy has been allowed. The
Government of India provides subsidy for
development of small hydropower both for
government, society and private sector in different
proportions depending on the location, degree of
difficulty and installed capacity.
Water is a state government subject in India, and
hence hydropower development is the responsibility
of state governments. Central government advises on
the hydropower matters and plays the role of an
overall river basin planner and arbitrator. The MNRE
has issued guidelines to the State Governments for
developing policies for renewable energy
development, and especially for small hydropower.
The Indian Electricity Act 2003 has special provisions
for encouragement of the development of renewable
energy and rural electrification.
The main features of the small hydropower policies of
the State government are summarized below:
24 States namely Arunachal Pradesh, Andhra
Pradesh, Assam, Bihar, Chhattisgarh, Gujarat,
Haryana, Himachal Pradesh, Jammu and Kashmir,
Karnataka, Kerala, Madhya Pradesh, Maharashtra,
Meghalaya, Mizoram, Orissa, Punjab, Rajasthan,
Sikkim, Tamil Nadu, Tripura, Uttarakhand, Uttar
Pradesh and West Bengal have announced policies
for setting up commercial small hydropower
projects through private sector participation. The
facilities available in the States include wheeling of
power produced, banking, buy-back of power and
facility for third party sale.
Over 6,500 MW capacity small hydropower sites
have been allotted to private sector for their
development.
Power banking (a concept of utilising the
electricity from the grid by the independent
Power Producer for its use from one season rainy
period) to other seasons i.e. dry period) is
permitted by many for a period of one year but in
some cases only for six to eight months.
Buy back of small hydropower is generally based
on the guidelines issued by the Central Electricity
Regulatory Commission (CERC), with variations
given by the State Electricity Regulatory
Commissions (SERCs) of many states.
Some states provide other concessions such as
lease of land, exemption from electricity duty and
entry tax on power generation equipment.
Some States do not levy any water charges while
some levy it as a percentage of electricity tariffs.
Some States have prescribed the minimum
quantum of power produced from renewable
sources, renewable purchase obligation to be
purchased by State Distribution Licensee varying
from 1 to 10 per cent in incremental manners.
Barriers to small hydropower development
There are several barriers for small hydropower
development in India that vary from state to state,
depending on the preparation for data, site, feasibility
reports and clearance. These barriers may be
summarized as follows:
Lack of availability of discharge data.
Lack of availability of qualitative geological and
sedimentation data.
Lack of availability of manpower for small
hydropower plants planning and design.
Long time in getting project clearances, in
obtaining permissions or licences.
Lack of involvement of local people.
Lack of awareness and legal tools with state
government to regulate minimum flows in the
streams.
References
1. Central Intelligence Agency (2012). The World
Factbook. Available from
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