Problems in Hydro power sector

- Issues with Hydro power plants

a)Technical issues - Geological surprises, topography, hydrology and accessibiliyt of the project site. 

- Enabling Infrastructures: hydro in remote site with no evacuation infrastructure, creating excess evacuation infrastrcuture keeping future projects in mind  especially where right of way is an issue. Furthermore PLF, is low thus significant capacity is underutilised, all this results in high transmission cost. 

- creation of associated infra like road bridges which lead to addtional costs. 

- Lack of infra like school, hospitals at difficutl to access site leads to non transfer of skilled manpower in the area. 

- water is a state subject with varying policeis like upfront premium, royalty power, and land acquistion policy of the state

- R&R issues (Tehri dam was started 25 years after R&R was started)

- Delay in clearnaces moef, letter certicicates and clearances from various agencies

- dispute in another state with respect to inter state agreements and disputes on water sharing. the sutlj beas dispute between PUnjab and Haryana and the Mullaperiyar dam conflit between kerala and Tamil Nadu. Conflict of division and utilisation patterns of the Brahmaputra also emerging.  No objection Certificate is required from each down-stream State for getting sanction even for run-of-the-river scheme which is time consuming job

- Improper planning, due to development of new projects on the same reiver, by increasing or reducing levels of silt in the water. 

- Low return on equity for developers  as long gestation. unpredictable cash flows as construction time period is uncertain

- High upfront investment to address greater complexity in design, engineering, environrment and social impact mitigation 

- Due to poor law & order and militancy condition in various parts of the country, heavy security arrangement has to be provided by the State for which cost is being borne by the project. As the law and order is the responsibility of the State, the cost of security may be borne by the State/Centre.