Overview
Hydro power projects are classified as large and small
hydro projects based on their sizes. Different countries have different size
criteria to classify small hydro power project capacity ranging from 10MW to 50
MW. In India, hydro power plants of 25MW or below capacity are classified as small hydro, which have
further been classified into micro (100kW or below), mini (101kW-2MW) and small
hydro (2-25MW) segments. Hydro Power was being looked after by Ministry of
Power prior to 1989 mainly with the help of State Electricity Boards. In 1989,
plant capacity up to 3MW and below was transferred to the Ministry of New and
Renewable Energy (MNRE) and as such 63 MW aggregate installed capacity of 3MW
and below hydro projects came within the jurisdiction of MNRE. Many initiatives
were taken by the Ministry since then for the promotion of small hydro which
included implementation of a UNDP-GEF assisted Technical Assistance project entitled
“Optimizing Development of Small Hydro Resources in Hilly Regions of India” and India-Renewable Resources Development
Project with IDA credit line having interalia small hydro development component
with target of 100MW canal based small hydro power projects through private
sector participation. Subsequently plant capacity up to 25MW and below was
entrusted with the MNRE in November 1999.
The
Ministry has taken a series of steps to promote development of SHP in a planned
manner and improve reliability & quality of the projects. By giving various physical and financial
incentives, investments have been attracted in commercial SHP projects apart
from subsidizing State Governments to set up small hydro projects. The Ministry is also giving special emphasis
to promote use of new and efficient designs of water mills for mechanical as
well as electricity generation and setting up of micro hydel projects up to 100
KW for remote village electrification. These projects are taken up with the
involvement of local organizations such as the Water Mills Associations,
cooperative societies, registered NGOs, village energy cooperatives, and State
Nodal Agencies.