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Large hydroelectric power projects ( more than 25 MW) in the country are facing time and cost over runs.
In response to a question in the Rajya Sabha on hydro-power generation projects running behind schedule, Minister of State (Independent Charge) for Coal, Power, Renewable Energy, Mines and Steel, Piyush Goyal said that all 41 hydropower projects in the country, aggregating to 11792.5 MW, are running behind schedule. The total cost over run for these projects is estimated to be ₹45,240.67 crore. This has nearly doubled the total cost of these projects to over ₹1.03 lakh crore.
Law and order, local agitation, bad geology, flash floods, water ingress, delayed forest and environment clearance and land acquisition have been identified as reasons for delayed projects. In some cases, cash flow problems with contractors have also been singled out for the delay.
The total time overrun for these 41 hydropower projects ranges from 12 months to 17 years, with a bulk of these projects being stranded due to land acquisition and opposition from locals.
NHPC’s 2000 MW Subansiri Lower project in Arunachal Pradesh/Assam has been identified for the highest cost overrun in a single project. The project cost has escalated to ₹17435.15 crore, an increase of ₹11149.82 crore with a 10 year time overrun in the commissioning.
The largest delay is in the 400 MW Maheshwar hydropower project in Madhya Pradesh. This project was to be developed by Shree Maheshwar Hydel Power Corporation Ltd (SMHPCL) as the country’s first large private hydropower project.
Hydropower projects with proposed capacity of more than 25 MW in Arunachal Pradesh alone face delays ranging from 3 years to 10 years. These are the 144 MW Gongri project by Dirang Energy, 2000 MW Subansiri Lower project of NHPC, 110 MW Pare project awarded to NEEPCO.
But relatively smaller hydropower projects are not having any better. BusinessLine had reported in March that of the 95 allotted small hydropower projects with capacities of less than 100 MW in the State, 17 have been in the works since 2007. Only 21 of these smaller projects had reached the Detailed Project Report stage till March.
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