(Seminar on Private Sector Participation in Hydropower Development 7-9 May 2002, pp. RM 1-8)
Water is one of the most important natural resources in our eco system. Hydropower represents renewal sources of energy, which enjoys many intrinsic advantages as compared to other sources of electric energy. The economically exploitable hydropower potential of the country has been assessed as 84,044 MW at 60% load factor. The planned development of economy was initiated in 1951 to improve the socio-economic conditions of the people. The progress under five-year plans has been impressive in all spheres of development. In spite of considerable increase in the generating capacity, demand for power has outstripped the availability causing wide spread shortages in different regions of the country.
Paucity of funds has also been a major cause for slow development of hydropower, delay in initial start and delay during construction stage. With the opening of the power sector to private investment since 1991 and Govt. of India’s approval to policy on hydropower development, variety of sources are available for hydro financing both for equity and debt. Private sector has so far been hesitant and cautious to invest in hydro projects. The fully investigated projects with detailed project reports when offered to private development shall get much more favourable response. To simulate the growth of hydropower and ensure greater involvement of independent Power Producers (IPPs) and joint venture much needs to done through requisite environment, incentives and reliefs.
