Measures taken to promote Hydro Power in India

August 12, 2021

The Government had taken several policy initiatives in the past for hydropower development in the country viz., National Electricity Policy 2005, National Tariff Policy 2016, National Rehabilitation & Resettlement Policy 2007 and Right to Fair Compensation & Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013.

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Subsequently, the Government has also issued measures to promote Hydro Power Sector on 8th March, 2019 under which the following provisions have been made:

Declaring Large Hydro Projects (>25 MW) as Renewable Energy source.
Tariff rationalization measures for bringing down hydropower tariff.
Budgetary Support for Flood Moderation/ Storage Hydro Electric Projects (HEPs).
Budgetary Support to Cost of Enabling Infrastructure i.e., roads/bridges.

Subsequently, the Hydro Purchase Obligation (HPO) trajectory, for the period 2021-22 to 2029-30 has also been notified by the Government on 29.01.2021.