Hydropower Development
Problems/Concerns of the
Developers involved
R.D.Varangaonkar
Chief Executive
Gammon India Ltd.
Gammon House,
V. S. Marg,
Prabhadevi,
Mumbai-400025
India Power Scenario
• In India, despite many power projects in operation,
there is still acute power shortage. As on date, the
total installed capacity is 130000MW which is
almost 22% less than the present requirement of
160000MW.
• Government of India has taken decision to develop
the power projects and provide power for all by
2012. the expected requirement for 2012 is
230000MW, that means in five years, in 11th Plan,
the capacity has to be increased by 100000MW. Out
of this, hydro power is almost 50%, i.e. 50000MW.
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
India Power Scenario
• As India is a developing country, the power
requirement will keep on increasing and it is
estimated that by 2030, the total power required will
be 800000MW.
• India is one of the gifted country having large
network of rivers which estimated hydro potential in
India as approx. 150000MW. However, only
30000MW has been tapped so far.
• It is necessary that the hydro power potential is
tapped to maximum extent which will not only fulfill
the electricity shortage but will also help in irrigation
and in supplying drinking water.
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
India Power Scenario
• After independence number hydel projects were
taken in hand and the percentage of hydel power
production was about 46% in 1951 which has
dropped down to 26% in 2005. there is need to
develop hydro power.
• It is advantageous not only for power but is also a
clean, renewable, environment-friendly energy (non-
polluting) having lowest cost of production among
all kinds of power projects and the maintenance is
almost negligible.
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
India Power Scenario
Trend of hydel, thermal, nuclear and non-
conventional powers for last 10 years is given in
the graph here below. All Power sectors
generation have steady increased by 50% to 68%
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
India Power Scenario
Generation
(Million Units) Generation
700000
617382
587366
600000 558134
531430
499450 515201 497044
480011 486031
500000 448445 466618
448380
420622 408208 422001
394488 386226
400000 353662
336104
316869 Total Thermal
300000 Hydel Nuclear
200000
101325
68609 74476 82703 80533 74346 73922 73796 84497
100000 63773
10042 12015 13252 16896 19278 19212
9010 17720 16838 17248
0
Year 1996-97 1997-98 1998-99 1999- 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
2000
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
India Power Scenario
Late in the year 1991 even non-conventional energy
started adding to the power generation and the graph
below shows capacity addition of thermal, hydel,
nuclear and non-conventional energy sources from the
year 1996 to 2005.
Generation
(Million Units)
Capicity Addition.
7000 6361
Total Thermal
Hydel Nuclear 5868
6000
Non.Conv.
4890
5000
4086 4085
4000 3467 3442 3420
3227
2994 2928 2927 2934
3000 2652 2590
2195 2057
1862 2380
2000 1377 1361 1942
1435 1508
1390
1090 1286 1127
1000 682 550 641
233
0 0 130 114 238 229
0 0 134
Year 1996-97 1997-98 1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
-1000
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
India Power Scenario
Generation
Capicity Addition.
(Million Units)
7000
6361
Total Thermal
Hydel Nuclear 5868
6000
Non.Conv.
4890
5000
4086 4085
4000 3467 3442 3420
3227
2994 2928 2927 2934
3000 2652 2590
2195 2057
1862 2380
2000 1377 1361 1942
1435 1508
1390
1090 1286 1127
1000 682 550 641
233
0 0 130 114 238 229
0 0 134
Year 1996-97 1997-98 1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
-1000
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
Future Plan
• Addition of 100000mw in the 11th plan is a tough
target.
• There were only four major players for hydel power
production, viz. NHPC, Neepco, THDC & SJVNL. In
addition to this, most of the electricity Boards were
executing power projects in a smaller scale in their
States.
• In order to achieve the target, the Government of India
wanted private participation in hydel power
production. However, private players were not
coming in a big way.
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
Future Plan
• It is only after the Electricity Act, 2003 which has very
positive effect because the entire sector was free
from licensing. Techno-economical clearance,
protection of consumers interest, capitalization – this
has encouraged the private participation in a big way.
• Add to that is National Electricity Policy of February
2005, promising power to all by 2012, rural
electrification, reduce the transmission and
distribution losses. With the result the private
participation is encouraged and is increasing to an
acceptable level.
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
Future Plan
Malana Power Corporation, Tata Powers, Jay
Prakash Associates, were the first to enter into
private hydel power production. Now many big
players are in the field and are showing their
interest in the hydel power production.
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
Future Plan
Installed Capacity by Sector (Mar 31, 2006)
Central: 39924MW State: 70,224MW
32%
56.50%
11.50%
Private: 14,139MW
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
Hydel Power
Hydel power can be mainly divided into three
categories –
• Run-off the River (no storage)
• Storage Projects
• Reversible turbine type
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
Hydel Power
• Hydel power projects can be sequential
as under –
• Conception
• Detail Project Report
• Planning
• Construction
• Operation & Maintenance
• Transmission & Distribution
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
Hydel Power
1 Conception
2 Detail Project Report
• Field Survey, topographical survey, river cross section,
geophysical investigation, hydrological observations,
land survey – Once these investigations are completed,
detailed project report is to be prepared. Most hydro
projects are in the remote locations. It is often observed
that due to logistics and unapproachable area, the above
surveys and investigations gives lot of problem and
substantial time is lost for preparation of the details
project report. In many of the projects, investigations
were carried out even by approaching the actual site on
elephant back.
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
Hydel Power
3. Planning
• Medium and large hydro projects require huge
construction equipments.
• Due to present sudden boom in the construction of
hydro power and other infrastructural development
in India. The delivery of the construction equipment
is often having large delivery time.
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
Hydel Power
3. Planning (Delays in equipment delivery)
• The order books of most of the manufacturing
companies are full causing delay in delivery of
equipment.
• For example, BHEL which is the largest hydel turbine
manufacturing in India. Presently BHEL is having
capacity of 6000mw per year. To meet the demand
of 50000mw, BHEL have to enhance the capacity to
10000mw per year. But still it appears to be difficult
to meet the requirement. Similar is the situation with
most of the construction equipment manufacturers.
Their order books are full and therefore there is
delay in delivery of equipments
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
Hydel Power
4 Material
• Construction material like cement, steel, structurals,
electrical cables. Due to sudden surge in
construction activities, the construction material
supply is really a big concern. Specially on the
hydro projects, because of the logistics and
unapproachable and bad roads, transportation of
material becomes difficult. Steel prices are
unpredictable and for the past 4-5 years it has been
fluctuation very much. Similarly is the cost of
cement. The rising cost and the transportation
increases the cost of construction.
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
Hydel Power
5 Manpower
• This is the greatest concern. Presently there is
acute shortage of experienced engineers for hydro
power sector, specially in the middle and senior
management level. This is mainly because in the
last decade there were not many hydro projects
under construction in India and therefore hydro
engineers are in acute shortage. This results in
attrition among major power development
companies and due to this instability does occur.
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
Hydel Power
5 Manpower
• Shortage of experienced and good engineers also
delays the work and increases the cost. Besides,
there is shortage of fresh graduates/diploma civil
engineers. Because of boom in the IT industries,
most engineers opt for computer and software
subjects and a meager percentage opt for civil
engineering branch. This results in shortage of civil
engineers even at the entry level.
• Similar is the case of good foreman, mechanics,
electricians and heavy equipment operators like
Tamrock operators, heavy excavator operators and
large capacity dumper operators.
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
Hydel Power
6 Finance
• To meet the power requirement, India needs about
Rs.9000 billion by 2012 for meeting the demand of
100000mw. This huge amount of Finance is a big
concern.
• However, because hydel projects are funded by
bankers debt equity ratio of 70:30, banks like UCO,
Union Bank, ICICI, IDBI, Power Finance Corporation
and other major banks are prepared to finance power
projects at lower rate of interest. Main finance has to
come from Government.
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
Hydel Power
7 Construction
Construction of hydro projects are in the remote
locations. Therefore, the approach road to the aproject
sites are to be constructed which require lot of time
and money. This adds to the time required for the
construction
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
Hydel Power
8 Communication
Being the remote location, communication is also not
available. Therefore Developers has to install Vsat &
DTS, which adds to the cost of the project.
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
Hydel Power
9 Construction Power
In the remote location rarely construction power is
available. The Developers have to generate his own
power by installing DG sets. DG power is almost three
times the cost of commercial power which adds to the
cost.
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
Hydel Power
10 Land for Construction
For installation of construction plant, labour camp,
officer’s camp, office, stores, etc. require huge land.
Local land-owners often creat problems for providing
land and even if they do, they ask for exhorbitant price.
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
Hydel Power
11 Law and Order
• Insurgencies, local problem and labour laws/unions –
Speedy construction of hydel project can be done
only when law and order situation and labour work
efficiently without creating problems.
• It is observed that labour union office crate problems
and get their unjustified demands fulfilled by
threatening to go on strike. Some of the projects
under execution in which, though the minimum wage
is Rs.75/- per day but the Developers are paying
about approximately Rs.210 per day which adds to
the cost. Despite this there is no guarantee of
smooth and efficient working of the project.
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
Hydel Power
11 Law and Order
• Local and influential contractors often dement for the
specialized work. Though they have no such
experience in the past. Despite this because of their
local standing under duress, works are given to them
which often gets delayed.
• Most areas these days are often affected by naxalites
or insurgencies. In northeast States which often
demand unjustified amount otherwise do not allow
the work to proceed.
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
Hydel Power
12 Environment
• Submergence of forest and inhabitant land and
related environment aspects often delay the project.
Despite the clear guidelines, environment clearance
often gets delayed because of procedural delays and
• Lack of co-ordination between various departments.
Several projects are facing opposition from
Environment Authority. This discourages private
participation.
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
Hydel Power
13 Geological Surprises
Himalaya is young mountain which does not have
constant geology which leads to surprises like loose
fall, cavity formation, flowing conditions and heavy
seepage of water, etc. This results in time overrun and
cost overrun.
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
Hydel Power
14 Rehabilitation
Submergence of land due to reservoir resulting into
shifting of people from the affected area. It is really
painful activity to shift affected people. It is difficult to
assess the actual compensation and there is always
dispute regarding compensation amount. This is to be
tackled very carefully and tactfully. This also requires
political support.
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
Hydel Power
15 Natural Calamities
• In spite of efforts to get data for hydrological &
metrological on many cases correct/accurate datas
are not available.
• For many projects flood warning system does not
exist, which takes construction agency by surprise.
• Floods, heavy rains and unpredictable snowfall often
disturbs the work and Developers have to sustain
very heavy losses due to damage to the plant and
equipment and to the structures constructed,
resulting into time overrun and cost overrun.
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
Hydel Power
16 Political Issues and Interstate Problems
Leaders of the States are very powerful political figures
and without their interest and backing it is difficult to
execute the projects. Similarly, if the river is running
through number of States, the political problems come
up which affects the Developers.
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007
Hydel Power
17 Operation, Maintenance, Transmission &
Distribution
• Transmission of power is mainly done by the Government
owned companies. Normally it is not a problem now.
However, the transmission lines are inadequate. For
example, in 1950 the transmission lines installed were
3708 ct.km. In the year 2005, it increased to 264240 ct.km.
This will have to be increased to 350,000 ct.km. So far
only one private transmission company is operating in
this field, i.e. Tata Transmission Project. Looking to the
power development, more private players need to come
into the field to fulfill the transmission demand.
demand
National Seminar on “ Hydropower: Harnessing the Untapped Potential” – January 4, 2007