Small Hydro Power Development in India

Small Hydro is environmentally most benign, operationally flexible, technically proven and commercially viable options for generation of electricity among the renewable sources of energy. Apart from CO₂ abatement, small hydro is also known for its advantages like short gestation period, limited investment affordable by the private sector, socially friendly, thereby quicker electricity generation and economic returns. Small Hydro Power is one of the earliest known renewable energy sources being used in India and elsewhere in the world in various forms like water wheels for grinding, water lifting wheels etc. India had installed its first hydroelectric power project of 130 kW capacity in the year 1897 in Darjeeling district, West Bengal, just 15 years after world’s first hydroelectric project was installed at Appleton, in USA 1882. The Sivasamudram Project of 2000 kW was the next to come up in Mysore district of Karnataka in 1902 for supply of power to the Kolar Gold Mines. Department of Non-Conventional Energy Sources (DNES) was created in 1982, with the mandate to develop renewable energy including small hydro. With the focus to tap large potential of small hydropower in the country, the electricity generation from small hydro project for capacity upto 3 MW station capacity was transferred from Ministry of Power to DNES in February 1989. The installed capacity of small hydro with capacity upto 3 MW was just 76 MW at that time. Initially, the department had supported demonstration projects throughout the country for various types of small hydro projects and extended subsidy up to 50% of total project cost under state sectors apart from financial support for detailed survey and investigations and Detailed Project Report preparation. The Department of Non-Conventional Energy Sources was later on converted into a fUll-fledged Ministry of New and Renewable Energy (MNRE) (Formerly Ministry of Non-Conventional Energy Sources) in 1992. Subsequently, the Ministry announced its scheme to support private sector small hydro projects by providing‘ interest subsidy and also continue to provide other fiscal and financial support. for both private & state sector.