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December 31, 2007

Rejuvenating hydel power

Businessworld has an article on the challenges facing hydelpower projects in India.
While India is reeling under a huge power shortage, hydro accounts for just a fourth of the total installed capacity of around 100,000 mega watts (MW). India’s progress on the hydro front has, after the initial spurt, been tepid. Till now, only 21 per cent of the potential hydro capacity is developed.

...three-fourths of the projects still remain in the public sector, with central PSUs such as National Hydroelectricity Power Corporation (NHPC) and North Eastern Electric Power Corporation accounting for the bulk. Only 4 per cent of the installed hydropower capacity has been commissioned by the private sector till September, according to the CEA.

...Manoj Gaur, chairman of Delhi-based infrastructure group Jaiprakash Industries, says that land acquisition and government clearances pose the biggest hurdles. Jaiprakash has the largest share (58 per cent) in private hydropower in India. Uncertainty in the time-line for clearances is one of the main reasons why the private sector is staying away, he complains.

Arun Natarajan is the Founder & CEO of Venture Intelligence, the leading provider of information and networking services to the private equity and venture capital ecosystem in India. View free samples of Venture Intelligence newsletters and reports.