Hydel projects go downhill after government’s thermal push

New Delhi: Lack of focus of successive governments and greater emphasis on capacity addition in the thermal and renewable sector has led to a sharp decline in the percentage of hydropower installation in the country, which from a high of 51 per cent in 1962-63 has come down to an abysmal 14 per cent in 2016-17.

Official data available with this newspaper reveals that currently 44 hydel projects with an aggregate capacity of 13,182 MW are under construction, out of which 42 such projects with a capacity of 12,966 MW have been delayed.

In addition to this, 39 hydel projects with an aggregate capacity of 22,319 MW have been concurred by the Central Electricity Authority, which are yet to be taken up for construction.

According to official estimates, till June 2015, more than 21 hydel projects, both public and private, were facing time and cost overruns, and the situation remains more or less the same with hardly any movement in pushing them.

Figures further reveal that while in 1962-63, hydel projects consisted of 51 per cent of the country’s total installed capacity (2,936 MW out of a total of 5,801 MW), till October 31, 2016, their share had slid to around 14 per cent. In the current financial year, out of the total installed capacity of 3,07,278 MW, hydel projects consist of only 43,112 MW.

Official sources also concede that there has been an accelerated capacity addition in the thermal sector to meet the growing energy demand. They have listed reasons apart from long gestation period, like geological surprises, rehabilitation and resettlement issues and lack of interest by private investors, behind the slide in hydel projects.

Considered as ‘temples of Modern India’ during the Nehruvian era, hydel projects have gradually lost out to thermal and nuclear projects, because of issues like land acquisition, tough terrain and lack of investor interest. Though the Narendra Modi dispensation is bullish on renewable energy, its focus seems to be solely on solar projects.

Also the government seems to be more keen on pushing ahead thermal projects, which had got delayed in the last few years due to lack of environmental clearances to coal mines.

Owing to their longer gestation period, the Centre has given hydel power projects a short shrift over thermal power projects installation, despite the fact that the latter require complex environmental clearances.

Hydel projects don’t require any such clearances and have even lesser carbon emissions, compared to even solar installations. Also, hydel projects ensure greater availability of power.