Hydropower Development Strategy with Private Sector Participation

Government is the major player in promoting, developing and distribution of electric power in India. There was little participation of the private sector due to a restrictive statutory and regulatory framework, which created a Government monopoly in the electric power sector. In order to meet the national development goals and remain competitive internationally, there is an urgent need for cheap, reliable and quality power, which is a critical economic input. Corrective measures to restore the financial viability of the SEBs and accelerated development of the hydropower resources are the need of the hour.

This paper discusses the need for power sector reforms with reference to accelerated development of hydropower in the country and presents a meaningful strategy for basin-wise development of the balance hydropower resources in the next 25 years. The paper also suggests the possible sources of financing and measures to attract private sector participation with a view to augment and mobilize the resources for achievement of the national power goals. Till the power sector reforms are successful, private sector participation in hydropower development will be difficult. In the interregnum, the CPSUs will have to take the lead, which need to be supported through liberal budgetary allocations.