As per the re-assessment studies carried out by Central Electricity Authority (CEA) during 1978-1987, the hydro power potential in terms of Installed Capacity (I.C.) is estimated at 148701 MW out of which 145320 MW of the potential consists of hydro electric schemes having I.C. above 25 MW.
As per the extant policy, Foreign Direct Investment (FDI) up to 100% is permitted in power sector, under the automatic route for generation, transmission, distribution and trading (excluding atomic energy) which includes hydro power generation also.
Forty five (45) hydro projects having installed capacity of 10897 MW (25 MW & above) have been targeted for hydro power capacity addition during the 12thPlan, out of which 534 MW has already been commissioned till date.
The fund requirement for setting up of these projects is about Rs.87,176 crores which is to be met by the hydro developers themselves. However, a few hydro projects of national importance under Central Sector are provided partial gross budgetary support (GBS) by the Government for which a provision of Rs.2979.29 crores has been allocated in the 12th Five Year Plan. These funds are released through Central Public Sector Enterprises (CPSEs) on a year to year basis depending upon the progress and requirement of the projects. During the first year of the 12th Plan i.e. 2012-13, GBS of Rs.469.50 crores has been released whereas a provision of Rs.1576.55 crores has been kept for 2013-14.
The Government has taken the following steps to ensure achievement of the 12th Plan target including for hydro development in the country:-
• Each project is monitored by the Central Electricity Authority (CEA) continuously through frequent site visits, interaction with the developers, critical study of monthly progress reports, etc. Chairperson, CEA holds review meetings with the developers and other stakeholders to sort out the critical issues/bottlenecks.
• A Power Project Monitoring Panel (PPMP) has been set up by the Ministry of Power to independently follow up and monitor the progress of the hydro projects.
• Review meetings are taken by Ministry of Power regularly with the concerned officers of CEA, equipment manufacturers, State Utilities/ Central Public Sector Undertakings / Project developers, etc. to sort out the critical issues.
• Proper Project planning is ensured to take care of difficult weather and work conditions including transportation of critical manpower and material in the available working season.
• A Task Force on Hydro Power Development was constituted on 03.09.2007 under the Chairmanship of Minister of Power to examine & resolve all issues relating to Hydro Project Development. So far five meetings have been held. The 5thmeeting was held on 27.02.2013.
• An Advisory Group under the Chairmanship of Minister of Power has been set up in January, 2013 to discuss and deliberate periodically issues pertaining to the Power Sector and suggest reforms in different areas related to the sector.