Issues of Hydropower Development in Uttarakhand Region of Indian Himalaya

Indian Himalayan region (IHR) accounts for about 79% of the total 1, 48, 700 MW hydropower potential in the country. However, out of the existing potential in IHR, only 16% has been utilized so far. Such low utilization of the hydropower potential is due to disparate issues during different stages of a hydropower project. During planning stage; arrangement of finances, environmental concerns, social acceptance of the project, resettlement & rehabilitation problems, long and multiple clearance procedures, are complex issues to be decided upon. Construction stage of the project is affected by cash flow disruption, inadequate technical preparedness of project developers, lack of modern equipment to address geological challenges, muck disposal, additional task of constructing road network, power transmission infrastructureand effect of natural disasters. Issues such as water availability, problems due to sediment inflow and deposit, effects of climate change and occurrence of natural disasters, tariff structure, equipment and power transmission system faults are in the forefrontduring operation stage. The present study discusses these issues for hydropower projects above 25 MW. The study also describes hydropower scenario and issues in Uttarakhand, one of the state in IHR, where hydropower plays a very important role in providing energy security. Uttarakhand has an estimated hydropower potential of about 20, 000 MW, but only 3900 MW have been utilized so far. This existing installed capacity of hydropower occupies about three fourth of the total installed capacity of the state. Further, case studies describing issues during construction of three hydropower projects in Uttarakhand have been discussed to get a more clear perspective on project specific problems. Finally, to overcome the issues facing different stages of hydropower projects in IHR including Uttarakhand, the present study has discussed specific suggestions. These include, promoting mandatory basin wise studies, provision of return on equity based on risks/uncertainties involved, introduction of new financing alternatives, streamline of clearance processes will help in better planning. For smooth execution of construction work; mandating award of work after obtaining clearances, simultaneous construction of power transmission infrastructure, promoting indigenous manufacturing have been suggested. Further, introduction of hydropower purchase obligations, differential tariff structure and preparation of regulatory framework of ancillary services will assist in generating revenue during hydropower generation. The present study targets hydropower planners, investors, policy makers and academicians, to engage in discussions and finding solutions to revive and accelerate hydropower sector in the country.