Govt forms expert panel to look into delays in hydropower projects

Hydropower capacity is only about 11 percent of India's total installed power generation capacity as on date. Representational picture

The Union government has set up an expert panel to look into the technical problems and the resultant cost overruns in its hydroelectric projects, most of which are mired by multiple delays.

In an order issued on September 20, the government's Central Electricity Authority (CEA) formed a seven-member committee which would now look into all such hydel projects that have run into geological hurdles.

The committee will be headed by the Member (Hydro) of the CEA, Chief Engineer and Director (hydro project monitoring division, CEA) and Chief Engineer (hydro project appraisal, CEA). It will also have representatives from the Geological Survey of India (GSI), Central Water Commission (CWC) and the concerned state governments.

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"It has been observed that development of hydroelectric projects has been marred due to various issues/constraints including geological uncertainties/constraints, resulting in significant time and cost overruns," read the order of the CEA.

Currently, as per the Techno-Economic Concurrence issued by the CEA, a project developer needs to systematically maintain a record of the geological surprises encountered and the treatment provided. At the
same time, the project developer also has to request the Ministry of Power to constitute an expert committee consisting of representatives from the state government, GSI, CWC and CEA. Once this committee is constituted, the project developer then submits the proposal for the enhanced cost
to the expert committee, which in turn examines and recommends the cost thereof.

The existing process is cumbersome. Through the new permanent panel, the government aims to expedite hydel projects in the country by cutting down on bureaucratic delays, said a senior official from the Ministry of Power.

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The new panel will study and analyse the events of geological surprise(s) faced in the hydroelectric projects and give its recommendations. It will also have to vet the additional time which may be needed due to the geological surprise faced, besides, examining the proposal for enhanced cost owing to geological surprise.

As of March 31, 2023, India had an installed hydroelectric power capacity of 42,104.55 MW, which is 29 percent of the total reassessed potential capacity of 1,45,320 MW. The projects under construction account for a capacity of 15,023.5 MW. As such, at least 57 percent identified capacity is yet to be harnessed.

Hydropower constitutes only 11 percent of India's total installed power generation capacity as of date. In 1962-63, hydropower constituted 52.78 percent of India's entire installed capacity, according to CEA data seen by Moneycontrol.

Major delayed projects

The commissioning of the Parbati-II hydropower project, which was delayed by about 13 years due to tunnelling issues has now been postponed to FY25. NHPC Ltd, India's largest state-owned hydropower company, had initially planned to commission the 800 MW project in Himachal Pradesh's Kullu district in March 2024. However, recent heavy rains and floods in Himachal Pradesh significantly impacted the plant's supporting infrastructure, including access routes and approaches, resulting in additional delays.

The 2,880 MW Dibang multi-purpose hydropower project in Arunachal Pradesh has been delayed by at least a decade. Now scheduled for commissioning in 2032, the Dibang project will be the biggest hydropower project in India once ready. It will also have the tallest dam in India with a height of about 288 metres.

The 2,000 MW Subansiri Lower hydropower project, which is under construction in Arunachal Pradesh and Assam, will now be fully commissioned by December 2024. NHPC Ltd commenced construction work on the Subansiri Lower hydroelectric project in January 2005 after obtaining forest clearance on October 12, 2004. However, due to agitations and protests by local stakeholders, the project construction work was stalled from December 2011 to October 2019. Construction resumed on October 15, 2019, after clearance from the NGT.