India
has begun focusing on large- scale hydroelectric projects
to ease electricity shortages in the country. So far,
12 large-scale projects have been approved, all to be
completed by 2002. The projects are expected to add a
combined 3.7 gig watts of installed hydroelectric capacity.
In addition, 5.81 gig watts of capacity are to be added
by new state-sector projects and 350 megawatts by the
private sector. National Hydroelectric Power Corporation
will construct five projects in Himachal Pradesh State
and one each in Manipur and Sikkim. The Central Electricity
Authority has been asked to give technical and economic
approval to two 800-megawatt projects in Himachal: Parbaht
Stage 2 and Kol Dam. India's Energy Development Company
Ltd. expects to commission its 9-megawatt Harangi Dam
in April 1999. This facility is expected to generate
about 36 million kilowatt-hours of electricity per year.
In the northern states of Jammu and Kasmir, construction
began in October 1998 on a 450-megawatt hydroelectric
project on the Chinab River. When completed, the facility
is expected to provide 2,600 megawatt hours of power
per year.
The Indian government has begun a policy to promote development of
hydroelectric power. The government plans to introduce a tariff subsidy
to support the development of hydroelectric power in an effort to improve
the nation's energy mix . At present, 78 percent of India's electricity
is fueled by coal and 13 percent by hydroelectricity and other renewables,
with natural gas, oil, and nuclear contributing the remainder. The
tariff is expected to raise an estimated $714 million annually. Other
policy decisions provide that hydroelectric facilities with installed
capacity up to 250 megawatts will not require technical or economic
approval from the Central Electricity Authority, which at present scrutinizes
every proposed project that exceeds 100 megawatts. In 1992, at the
start of the eighth Five-Year Plan, India's installed capacity of small-scale
hydroelectric projects was 93 megawatts. By the beginning of 1997,
there were 216 such projects installed, with a combined capacity of
155 megawatts
Work is in progress on 208 projects that will provide 230 megawatts
of installed capacity. India's federal Ministry of Non-conventional
Energy Sources (MNES) is promoting small-scale hydroelectric projects
of up to 3 megawatts to develop remote rural areas. MNES conducted
a nationwide survey and identified the potential for development of
a combined 2,040 megawatts in 25 states and outlying islands [48].
Sites with a potential of about 600 megawatts have been offered by
states for commercial development. To further accelerate the exploitation
of the small hydropower potential and to promote their commercialization,
MNES has charted out several measures. Some of the main objectives
and activities being undertaken during the ninth Five-Year Plan are
small hydro resource assessment; encouragement to commercial small
hydro projects; renovation and modernization of old small hydro projects;
special incentive packages for northeastern states to exploit small
hydro potential; upgrading of water mills; and intensification of industry-based
research and development. On January 12, 1995, the Indian government
announced a liberalized tariff norm for hydroelectric projects. To
encourage greater participation of the private sector in hydroelectric
generation, government incentives are provided for projects commissioned
after January 1, 1997.
