Confidential

REFORMS INITIATIVE BY UTTARAKHAND FOR

THE SPEEDIER HYDRO POWER
DEVELOPMENT IN THE COUNTRY

SEPTEMBER 2012
eights

LOCATION OF UTTARAKHAND STATE IN INDIA

UTTARAKHAND AT A GLANCE
Population

1.01 Crores

Geographical area

53480 Sq. Kms

Area under forest cover

65%

UTTARAKHAND HYDRO POWER DEVELOPMENT

PLAN

HYDRO POTENTIAL
1. IN 12TH PLAN TOTAL TARGET IS 88,425 MW- 71288
BY THERMAL,11897 BY HYDRO AND 5300 BY
NEUCLEAR POWER.
2. CAPACITY ADDED IN 11TH PLAN IS 54964 MW
AGAINST TARGET OF 78700 MW.
3. PER CAPITA ENERGY CONSUMPTION HAS REACHED
860 UNITS IN COMPARISON TO 768 UNITS IN 2009.
4. HYDRO POWER SHARE IS 19.3% FROM A LEVEL OF
26% IN THE PREVIOUS LEVEL.
5. IDEAL RATIO OF HYDRO TO THERMAL IS 40:60
4
Source: Magazine ENERTIA-JUNE 2012 and
INFRATRUCTURE TODAY-August 2012

HYDRO POTENTIAL
1. ASSESSED POTENTIAL OF UTTARAKHAND STATE
IS MORE THAN 27,000 MW.
2. BEFORE CREATION OF THE STATE, 1116 MW
HYDRO-POWER POTENTIAL WAS HARNESSED.
3. AFTER
FORMATION OF THE STATE, 2506 MW
HYDRO-POWER
POTENTIAL
HAS
BEEN
HARNESSED
4. THE INSTALLED CAPACITY OF THE HYDRO POWER
PROJECTS UNDER CONSTRUCTION IS 4011MW.
5. THE BALANCE HYDRO POWER POTENTIAL TO BE
HARNESSED IS 19406 MW.
5

Details of Hydro Power Potential in Uttarakhand

As on 07.08.2012
Project
Particulars
(MW)

UJVNL

CPSUs

IPPs

UREDA

ID

UIPC

PDA

State
Identified

Self
Identified

Total
(MW)

Under
Operation

1310.25

1800.00

508.25

3.64

3622.14

Under
Construction

174.00

3242.00

593.10

2.84

4011.94

Under
Development

3275.60

3238.00

1443.60

0.40

178.50

2136.70

6620.00

12.80

2500.00

19405.60

Total

4759.85

8280.00

2544.95

6.88

178.50

2136.70

6620.00

12.80

2500.00

27039.68

PDA Pancheshwar Development Authority

ID- Irrigation Department

6
4

30000

TotalAvailability
Availability
-Total
without gas

CAPACITY
ADDITION
IN MU
CAPACITY
ADDITION

UTTARAKHAND SHARE
(UTTARAKHAND
SHARE)

5.1%

27895

3.1%

26553

-Demand

25347

25000

6.7%

@ 8% rise

24587

24284

6.0%

% SHOWS DEFICIT / SURPLUS OF DEMAND & AVAILABILITY

22765

22351

10.0%

21079

21473

20000
19517

GENERATION (MU)

0.6%
18189

18072
16733

15493

15000

15653

14346

-6.4%
13284

12862

13656

12243

12898

11232

-11.8%

11140

-10.1%

10333

10172

11408

10000
9965

9517

-11.3%

10475

10172

10630

-14.1%

-14.4%

@ 10% rise
12519

11140

-UJVNLUJVNL
without gas
11693(Excluding

HP Share)

9665

8066
8787

7262

-7.9%

-Central Pool

7988

6602

6003
4961

5000

5457

6447

4451

4413

4510

4100

791

791

0
213

2011

213

2012

4510

4791

5339

1089

791

5498

1089

1307

1498

1781

1781

1781

1781

1781

-CPSU 12% share

-IPP

791

213

369

2013

2014

467

2015

467

2016

637

637

733

733

733

2017

2018

2019

2020

2021

YEAR

733

733

2022

2023

12% share
above 25MW

Projected Energy Scenario of Uttarakhand (MW-Uttarakhand share)

S.
No.

Developing
Upto April- After Aprilagency
2013

Year
Total

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

41.50

3.50

120.00

11.30

366.30

292.00

400.00

0.00

210.00

0.00

660.00

2117.60

62.4

53.28

46.20

66.96

228.84

48.00

0.00

0.00

39.60

21.00

0.00

43.20

0.00

25.08

0.00

0.00

0.00

0.00

128.88

Total

1570.25

13.00

41.50

43.10

203.40

11.30

462.78

338.20

492.04

0.00

210.00

0.00

660.00

2475.32

Cumulative
Capacity(MW) in state
share

1570.25

1583.25

1882.55

2345.33

2683.53

3175.57

3175.57

3385.57

3385.57

4045.57

2012

2012

1306.25

13.00

216.00

Yearwise Capacity
Addition in state share

UJVN

Yearwise Capacity
Addition
2

CPSUs

Yearwise Capacity
Addition in state share
3

IPPS

1624.75 1667.85 1871.25

Projected Energy Scenario of Uttarakhand ( MU-Uttarakhand Share)

S.
No.

Developing
agency

UJVNL

Yearwise Energy
Addition
2

Year
Upto
April2012

After April2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

4413

38.33

58.80

281.23

547.77

158.75

949.19

1618.47

2106.15

0.00

968.00

0.00

1379.00

8105.69

298

218

191

283

990.00

156

98

170

96

521

9616

CPSUs

Yearwise Energy
791.00
Addition in state share
3

Total

IPPS

Yearwise Energy
213.00
Addition in state share
Total

5417

38

59

437

943

159

1337

1809

2486

968

1379

Cumulative Energy
addition in state

5417

5455

5514

5952

6895

7054

8391

10201

12686

12686

13654

13654

15033

SWOT analysis
SWOT analysis (alternately SWOT Matrix) is a strategic planning method used
to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats
involved in a project or in a business venture.

Strength:
1. Strong history of hydro resource development in early 5year plans.
2. Substantial national and state water reserve potential for hydro development.
3. Presence of strong private sector along with PSU organization of centre and
state sector.
4. Massive interest in private sector under the PPP initiative with several
companies in development and construction of hydro projects like Patel
Engineering, HCC Ltd., Jaiprakash Associates, S&N Power, Bhilwara Energy,
L&T-ECC, Lanco Energy etc.
5. World class engineering and design expertise and availability of civil
engineers.
6. Global technology provider like Voith Hydro, Andritz Hydro, Alstom, Toshiba
corporation, BHEL, Kirloskar Brothers ltd
7. Low commercial generation cost and negligible emission impact.

10

SWOT analysis
Weakness:
1. Lack of national strategy with the state level integration for development of
hydro power potential and targeting towards 25-30% contribution in
national power generation mix by 2032.
2. Lack of potential will of scientific process for addressing R&R of project
affected families.

3. Sluggish clearance and red tapism at MoEF and other such Central and
State agencies.
4. Inadequate financing opportunities from local market for mega capacities.

5. Project cost and time overruns due to inordinate delay via e extraneous
factors.
6. Hydropower development conceive as a standalone concept rather than
linking it up with mega development, socio economic upliftment, life style
enhancement opportunity and moving it as an harbinger of economic
prosperity via development of the hydro reverse region and the PAFs stake.

11

SWOT analysis

Opportunities:
1. CDM mechanism and carbon credit rating for hydro projects.
2. Good RoI for hydro power developers thereby helping the PPP process.

3. Water resource cooperation amongst SAARC countries and possibilities

likae Tala Valley and Punatsanchu-Bhutan like projects helping the Indian
hydropower scenario.
4. Favorable international developing agencies support to hydropower in
India(WB,ADB etc.)
5. Only 25% of the actual hydropower potential exploited as on date giving
huge opportunities to the hydro power sector and its critical role in the

national energy mix and energy security.

12

SWOT analysis

Threats:
1. Environmental over- activism by anti dam activists.
2. Centre-State and interstate disagreements on development,
management and exploitation of water resources leading to conflict,
thereby affecting hydro power projects.
3. Chances of environmental impacts and their inadequate management
due to development of large reservoirs and basin at the dam based
hydro projects.
4. International subterfuge on hydro projects in India, thereby leading to
stalling of such projects.
5. Ingeniune and Fly-by-nights operator posing as hydro power
developers resulting in capacities on papers rather than developing in
reality.
13

FAVOURABLE CONDITIONS IN UTTARAKHAND

1. ABUNDANT AVAILABLE HYDRO POTENTIAL.
2. NO LAW & ORDER PROBLEMS.
3. ACCESSIBLE SITES.
4. AVAILABILITY OF SKILLED & UNSKILLED MANPOWER.

5. ANCILLIARIES/INDUSTRIES IN THE VICINITY.

6. PROACTIVE GOVERNMENT ENSURING EASY & QUICK CLEARANCES.
7. COMPREHENSIVE

PLAN

OF POWER

EVACUATION

THROUGH

STATE

TRANSMISSION UTILITY PTCUL, GOLDSHIELD AWARD WINNER FOR 2009-10

8. EXCELLENT CONNECTIVITY & EASY REACH TO NCR .
9. CUMMULATIVE

ENVIRONMENT

IMPACT

ASSESMENT

STUDIES

FOR

DEVELOPMENT OF HYDRO POWER PROJECTS IN VARIOUS RIVER BASINS

IN UTTARAKHAND WILL BE COMPLETED WITHIN 5-12 MONTHS.
10. GOOD EDUCATION FACILITIES (LITERACY RATE IS MORE THAN 83%).
11. TOURIST DESTINATIONS & FAMOUS PILGRIM PLACES.

14

ADVANTAGES OF HYDRO POWER

1.

ABUNDANT HYDRO POTENTIAL & LESS THAN 20% HARNESSED

2.

BEST SOURCE OF MEETING PEAKING POWER

3.

IMPROVES GRID STABILITY & RELIABILITY.

4.

RENEWABLE SOURCE OF ENERGY

5.

FOSTERS ENERGY SECURITY

6.

AFFORDABLE & COST EFFECTIVE

7.

ENVIRONMENTALLY BENIGN SOURCE

8.

ADDITIONAL BENEFITS FOR STORAGE SCHEMES - FLOOD

MODERATION, IRRIGATION, TOURISM ETC.

9.

COST REDUCES WITH PASSAGE OF TIME IN HYDRO POWER

WHERE AS IN OTHER SOURCES IT GOES UP

15

ADVANTAGES OF HRDRO POWER

10. BOOSTING OF TOURISM BY DEVELOPMENT OF HEPs
11. DEVELOPMENT OF PISSICULTURE
12. EXPERIENCE OF OPERATING & MAINTAING HYDRO POWER FOR
MORE THAN 100 YEARS.
13. EXISTENCE
GoI/STATE.

OF INVESTOR

FRIENDLY HYDRO

POLICY OF

14. DEVELOPMENT OF INFRASTRUCTURE LIKE ROADS / BRIDGES

15. EXISTENCE
OF
ANCILLIARY
INDUSTRIES,
SUPPLIERS,CONTRACTORS,WORKSHOPS

VENDORS,

16. UNCERTAINITY IN AVAILABILITY OF GAS FOR GENERATION

17. NON AVAILABILITY OF ADEQUATE / QUALITY OF COAL
18. COST OF GENERATION FROM RENEWABLE SOURCES LIKE
SOLAR, WIND, BIOMASS IS VERY HIGH
16

CHALLENGES IN HYDRO DEVELOPMENT

ENVIRONMENTAL ISSUES
1. FOREST AND WILD LIFE CLEARANCE
2. DELAY IN PUBLIC HEARING

3. ENVIRONMENT CLEARANCE
4. REHABILITATION AND RESETTLEMENT
TECHNICAL ISSUES
1. PREPARATION OF BANKABLE DPRs
2. GEOLOGICAL UNCERTAINTIES
3. NATURAL CALAMITIES
4.LESSER AVAILABILITY OF COMPETENT CONTRACTING
AGENCIES
5. SHORTAGE OF TRAINED MANPOWER
6. LESSER MANUFACTURING FACILITIES

17

CHALLENGES IN HYDRO DEVELOPMENT

FINANCIAL ISSUES
1.

SECTOR IS HIGHLY CAPITAL INTENSIVE

2.

LONG GESTATION PERIOD

3.

NON-AVAILABILITY OF LONG TENURE LOANS

4.

RESOURCE CRUNCH

INFRASTRUCTURAL AND ADMINISTRATIVE ISSUES

1.

INACCESSIBILITY OF THE AREA

2.

LAND ACQUISITION

3.

LAW AND ORDER ASPECTS

4.

UPFRONT CHARGES

5.

ADDITIONAL DEMANDS BY THE AFFECTED PEOPLE

6.

INTER-STATE ASPECTS

18

POLICY ON HYDROPOWER DEVELOPMENT FOR

PRIVATE SECTOR
GOVERNMENT OF UTTARAKHAND HAS FRAMED FOLLOWING
THREE
POLICIES
FOR
GIVING
IMPETUS
TO
THE
DEVELOPMENT OF NEW HYDRO POWER PROJECTS IN THE
STATE:
1. POLICY ON HYDROPOWER DEVELOPMENT FOR PRIVATE
SECTOR (25 MW TO 100 MW) DECLARED IN THE YEAR
2002.
2. POLICY ON HYDROPOWER DEVELOPMENT FOR PRIVATE
SECTOR (ABOVE 100 MW) DECLARED IN THE YEAR 2004.
3. POLICY FOR HARNESSING RENEWABLE ENERGY
SOURCES
WITH
PRIVATE
SECTOR/COMMUNITY
PARTICIPATION (100 KW TO 25 MW) DECLARED IN THE
YEAR 2008.
19

SALIENT FEATURES OF POLICY ON HYDROPOWER

DEVELOPMENT BY PRIVATE SECTOR (25 MW TO 100 MW)
1.

ANNOUNCED ON 19-10-02

2.

TWO PART BIDDING SYSTEM

3.

MINIMUM UPFRONT PREMIUM OF RS.5 LAC PER MW, THE HIGHEST

BIDDER OVER AND ABOVE THIS WILL BE ALLOTTED THE PROJECT

4.

AFTER PROJECT ALLOTMENT DPR HAS TO BE PREPARED AND

CLEARANCE IS TO BE OBTAINED WITHIN 55 MONTHS AND
COMPLETION OF PROJECTS WITHIN 54 MONTHS THEREAFTER.

5.

NON ADHERENCE OF TIME SCHEDULE WILL LEAD TO RETURN OF

THE PROJECT TO GOVERNMENT AND ALLOTTEE WILL NOT GET ANY
COMPENSATION.

6.

THE ALLOTMENT PERIOD FOR A PROJECT SHALL BE 45 YEARS,

AFTER WHICH IT SHALL BE EITHER RENEWED OR RETURNED BACK
TO THE GOVT.

7.

12% FREE POWER SHALL BE GIVEN TO GOVT. FOR FIRST 15 YEARS.

18% FREE POWER SHALL BE GIVEN TO GOVT. THEREAFTER.

20

SALIENT FEATURES OF POLICY ON HYDROPOWER

DEVELOPMENT BY PRIVATE SECTOR (ABOVE 100 MW)
1.

ANNOUNCED ON 28-01-04

2.

TWO PART BIDDING SYSTEM

3.

MINIMUM UPFRONT PREM. OF RS. 5 CRORE PER PROJECT, THE

HIGHEST BIDDER OVER AND ABOVE THIS WILL BE ALLOTTED THE
PROJECT

4.

AFTER PROJECT ALLOTMENT DPR HAS TO BE PREPARED AND

CLEARANCE IS TO BE OBTAINED WITHIN 55 MONTHS AND
COMPLETION OF PROJECTS WITHIN 84 MONTHS THEREAFTER

5.

NON ADHERENCE OF TIME SCHEDULE WILL LEAD TO RETURN OF

THE PROJECT TO GOVT. AND ALLOTTEE WILL NOT GET ANY
COMPENSATION.

6.

THE ALLOTMENT PERIOD FOR A PROJECT SHALL BE 45 YEARS,

AFTER WHICH IT SHALL BE EITHER RENEWED OR RETURNED BACK
TO THE GOVERNMENT

7.

12% FREE POWER SHALL BE GIVEN TO GOVT. FOR THE ENTIRE

PERIOD OF ALLOTMENT.

21

SALIENT FEATURES OF NEW RENEWABLE ENERGY

POLICY 2008 OF UTTARAKHAND
1. THE POLICY WAS ANNOUNCED VIDE GOVT. ORDER NO. 263 DATED
29.1.2008.
2. HYDROELECTRIC PROJECTS HAVE BEEN AS CLASSIFIED INTO THREE
CATEGORIES I.E. MICRO (UP TO 100 KW), MINI (100 KW-5MW) &SMALL (525 MW)
3. ON THE BASIS OF THE MODE FOR IDENTIFICATION, PROJECTS ARE
GROUPED INTO THE FOLLOWING TWO CATEGORIES:
(A)

SELF IDENTIFIED PROJECTS: DEVELOPERS MAY IDENTIFY PROJECTS

AND ASK FOR ALLOTMENT

(B)

STATE IDENTIFIED PROJECTS: THE STATE OR STATE SPONSORED

AGENCIES MAY IDENTIFY PROJECTS OF ANY SIZE, PREPARE THE DPR
AND ALLOT TO THE PRIVATE DEVELOPERS.

4. THE ENERGY PRODUCED BY THE COMMUNITY/ ENTREPRENEUR IS

PROPOSED TO BE PURCHASED BY UPCL AT A RATE WHICH IS
UNIFORMLY APPLICABLE TO ALL PROJECTS AS DECIDED BY UERC.

22

SALIENT FEATURES OF NEW RENEWABLE ENERGY

POLICY 2008 OF UTTARAKHAND
5.

UPCL/PTCUL WOULD PROVIDE WHEELING FACILITY FOR POWER USAGE

WITHIN OR OUTSIDE THE STATE.

6.

UPCL WOULD EXTEND BANKING FACILITY

DEVELOPERSWITH MUTUAL UNDERSTANDING.

TO

COMMUNITY/

7.

MICRO
PROJECTS
ARE
RESERVED
FOR
DOMICILES
OF
UTTARAKHAND/GRAM PANCHAYATS/ SOCIETIES OF UTTARAKHAND

8.

PREFERENCE WOULD BE GIVEN IN ALLOTTMNET TO DOMICILES OF

UTTARAKHAND/ GRAM PANCHAYATS/ SOCIETIES OF UTTARAKHAND
FOR MINI PROJECTS

9.

SELF IDENTIFIED PROJECTS: NO PREMIUM FOR PROJECTS UPTO 5 MW.

HOWEVER PROJECTS BEYOND 5 MW, PREMIUM @ RS. 5 LACS/MW OR
PART THEREOF WILL BE TAKEN FROM APPLICANTS.

10. STATE IDENTIFIED PROJECTS : THRESHOLD PREMIUM FOR MICRO

PROJECTS-NIL, FOR MINI PROJECTS @ 1.00LACS / MW, FOR SMALL
PROJECTS- 5.00LACS/MW.

23

MODE OF DEVELOPMENT
1. DEVELOPERS ARE INVITED IN THE FORM OF JOINT
VENTURE / SPECIAL PURPOSE VEHICLE
2. INDEPENDENT POWER PRODUCERS MAY ALSO
EXPLOIT THE HYDRO POWER THROUGH BIDDING
3. INVESTORS CAN WORK AS EXECUTING / SUPPLING
AGENCIES

24

CONCULSION
1. THERE IS INADEQUATE QUANTITY OF GAS &
COAL IN COUNTRY AND NUCLEAR POWER
PROJECTS
ARE
HAVING
SERIOUS
SOCIAL,
ENVIRONMENTAL AND SECURITY CONCERNS. IN
SUCH A SCENARIO POWER DEFICIT CAN BE
ECONOMICALLY OVERCOME ONLY THROUGH
DEVELOPMENT OF HYDRO POWER PROJECTS WITH
SUITABLE ENVIRONMENTAL SAFEGUARDS BASED
UPON SCIENTIFIC STUDIES, FOR WHICH THE STATE
OF UTTARAKHAND IS FULLY COMMITTED.

25

CONCULSION
2. THE STATE OF UTTARAKHAND, HAVING TAKEN
VARIOUS REFORM INITIATIVES, INVITES VARIOUS
INDEPENDENT
POWER
PRODUCERS
IN
ITS
DEVBHOOMI HAVING SACRED CHAR DHAMS, TO
JOIN HANDS FOR SPEEDIER DEVELOPMENT OF
HYDRO POWER PROJECTS IN THE STATE. SOME OF
IDENTIFIED
PROJECTS
WHICH
ARE
EASILY
APPROACHABLE AND ARE ON OFFER THROUGH
FORMATION OF JOINT VENTURES WITH UJVN
LIMITED.

26

27

28

29

RAMGANGA POWER STATION

3 X 66 = 198 MW

30

CHILLA POWER STATION

4 X 36 = 144 MW

31

TILOTH POWER STATION

3 X 30 = 90 MW

32