CHAPTER VII

SUMMARY, CONCLUSION AND SUGGESTIONS

In this chapter an attempt has been made to sum-up the entire study

and suggestions are made such that setting-up of hydropower projects

could become a fruitful activity for the state, people and managements.

7.1 SUMMARY

Electric power is a basic need for the economic development of a

country. Availability of electricity has been the most powerful vehicle for

introducing economic development and social change throughout the world.

The process of modernization, increase in productivity in industry and

agriculture, and the improvement in the quality of life of the people basically

depend upon the adequate supply of electrical energy. Appropriately, the

programmes relating to the generation, transmission and distribution of

electrical energy have been the highest priority in national planning

process. Thus, electric energy in this modern context has become a basic

requirement for human beings like, food, cloth and shelter.

The emergence of electricity as a source of energy became possible

on account of Michel Faraday's discovery. This discovery opened the doors

of conversion of mechanical energy into electricity. Today, electricity is the

most preferred form of energy on account of the versatility and cleanliness

associated with its handling and utilization.

There is a wide range of fuels from which electricity can be

generated. These fuels include fossil-fuels like; coal, gas, petroleum

products, nuclear as well as renewable sources of energy such as bio-

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mass, geothermal, hydropower and solar source. These sources are

broadly classified into two groups viz, renewable sources and non-

renewable sources. Non-renewable sources of energy supply most of the

energy consumed in the world today, as they are relatively and technically

easy to exploit and provide cheap energy.

Keeping In view, the fitness of fossil-fuels reserves and large-scale

environmental degradation caused by their wide spread use, it is imperative

to develop clean and renewable energy resources for sustainable energy

supplies. The ever increasing need to economize the use of fuel and the

improvement in the technique of exploiting hydropower resources, all has

considerable attention upon the need for comprehensive hydropower

development.

Hyde! generation is the most economical of all other methods of

generation, when such considerations as easier operational conditions,

cheaper maintenance, longer life, cheap cost of production of energy are

considered. In addition, hydropower projects commonly serve other

purposes, too, which include irrigation, water supply, control of fertile

erosion and year round navigation.

The classification of hydro-electric plants may be based on the

quantity of water available, available head (height) and nature of load

(pressure) like; high head power plant, low head power plants and pumped

storage power plants.

Among the primary sources of electricity, hydropower ranks highest

in the list of priority in energy exploitation. The first power station for public

supply in the U.S.A. was opened in 1882 in New York. At present, more
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than 19 percent of world electricity comes from hydro-electric power

projects. Canada is the world's largest producer of hydropower and

produces over 70 percent of its electricity from hydro-electric sources.

The history of electricity in India is almost as old as that of advanced

countries like U.S.A. and U.K. Electric power generation in India is primarily

derived from three sources: i.e., coal, water and nuclear power. Role and

share of non-conventional sources of energy like, solar, geo-thermal, wind

and tidal is negligible, accounting for less than 1 percent of total energy

needs. The bulk of electricity in India is obtained from fossil-fuels such as

coal and petroleum products.

In an era of depleting fossil-fuels and continuous price hikes,

hydropower in India, is a proven renewable energy source that can provide

the large, concentrated quantities of electricity needed to run the modern

economy.

Hydel development in India started over a century back with the

installation of small hydropower station in Darjeeling in 1897. However, next

few years saw a spurt in hydel generation activity. At the time of

independence only 1362 MW of hydro-electric capacity was in existence. At

present, the total identified potential in five regions is estimated around 1,

48,700 MW. The north eastern region accounts highest identified potential,

followed by northern region whereas western region accounts lowest

identified potential of hydropower.

Presently in India, there are various hydro-electric projects under

operation which utilize only about 14 to 15 percent of the total potential and

6.3 percent is under execution.

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Despite, having many advantages over thermal power (like cheap

power and zero pollution), liberalization of power sector, framing of national

policy for power development etc., hydel power has not been developed to

its full potential and bulk of potential is yet to be exploited.

Even though the hydropower is cheap in long-run, the initial

investment in hydro-electric power is almost 50 percent higher than coal

based thermal power. The high initial cost and the general 'Cash Crunch'

situation of most of the State Electricity Boards have also led to low

Incremental hydel capacity addition over the years. Apart from this, the

other impediments are the bulk civil and construction work, higher risk and

long construction period.

Ministry of Power (MoP) is the nodal authority in India having

several undertakings / organizations operating under it, concerned with the

overall development of electrical energy in the country.

The surest way to ease the power situation in India lies in harnessing

the tremendous hydropower potential of different states. Among the states,

the largest potential is available in Arunachal Pradesh followed by Himachal

Pradesh. Himachal Pradesh hydropower potential is estimated around one-

fifth of the total hydel potential of the country.

Himachal Pradesh which was formed on 25 January 1971 with

Shimla as its capital and with 12 districts, is one of the most developed hilly

regions in the Himalayan ranges, if per capita income Is considered as an

index of development. Overall literacy rate of Himachal Pradesh is much

larger than the all India literacy rate. Due to the varying area climate
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conditions in the state, which are suitable for growing a wide range of fruit

crops, horticulture is playing vital role in improving the socio-economic

conditions of the rural population. Himachal Pradesh has the potential to

become the Switzerland of the East, the fruit bowl of the country and the

Energy State in real sense.

Richly endowed with vast hydel potential of about 21000 MW in its

five river basins, only 6353 MW has been exploited so far, out of which 454

MW is under the control of Himachal Pradesh State Government and bulk

of potential has been exploited by the Central Government and other

agencies. The State Government has been giving highest priority to the

development of hydel power generation. The Government of Himachal

Pradesh has formulated its new hydropower policy to give thrust for

development of hydropower resources in the State to meet the energy

demands of the nation. For harnessing the huge potential of hydropower in

Himachal Pradesh, the State Government has adopted multi-pronged

strategy for power development through Independent Power Producers

(IPPs), State sector, Central sector and Joint venture. The intention behind

adoption of this strategy is to produce as much energy as possible with

minimum cost and with minimum environmental consequences. Interests of

the State are being safe guarded while handing over projects to agencies

other than State Government agencies.

As a result, there is large number of power agencies indulging in

hydropower generation in Himachal Pradesh under different sectors. The

leading agencies working in hydel power generation in the State are:

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Himachal Pradesh State Electricity Board in State sector, Satluj Jal Vidyut

Nigam Ltd. in Joint sector, National Hydro-electric Corporation (NHPC) in

Central sector and Jaiprakash Hydropower Ltd. in Private sector. In this

study, an attempt has been made to evaluate the performance of

hydropower projects which are under execution of these leading agencies.

Satluj Jal Vidyut Nigam Ltd.-a joint venture of Government of India

and Government of Himachal Pradesh is one of the leading agencies

working in the hydel power development in Himachal Pradesh. 1500 MW

Nathpa Jhakri hydropower project was the first project undertaken by SJVN

for execution which is the largest underground hydropower project of the

country and fully commissioned in the year 2004.

The project is located along National Highway-22 in Kinnaur and

Shimia districts of Himachal Pradesh. The project has the largest

underground power complex in the country and the largest desilting

chambers in the world.

The initial cost of the project was estimated Rs. 4338 crores which

was revised in June, 1998 to be Rs. 7666.32 crores and in Sept., 2002 to

be Rs. 8657 crores, taken as completion cost of the project.

For financing the project cost, the funds were arranged from many

sources. Internal sources include Government of India and Government of

Himachal Pradesh and external sources includes debt taken in the form of

IBRD loan, external borrowings, and domestic borrowings. The total cost of

the project is financed in 1:1 debt equity ratio. It was estimated that the

project will cover its cost within seven years.

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At present, total number of workers employed in the project Is 662

which comprise executives, supervisors and workmen. Workmen constitute

the highest percentage of the total employment in the project.

Representation is also given to females in different categories of workforce.

The SJVN is also fulfilling the norms set by the H.P. State

Government with regard to employment. SJVN has also commenced the

construction of infrastructural work pertaining to 412 MW Rampur hydro

power project and investigation work for the preparation of DPR for 636 MW

Khab hydro-electric project and 700 MW Luhri hydro-electric project.

The Government of Himachal Pradesh has also taken an early

initiative in inviting private participation in development and utilization of its

large hydel potential. 300 MW, Baspa-ll hydel project is the first hydropower

project commissioned under Jaiprakash hydropower Ltd. (a private sector

executing agency).

Baspa-ll hydropower project is the largest hydropower plant

commissioned in the private sector in the country. The project is located on

the river Baspa, a tributary of river Satluj in Kinnaur district of Himachal

Pradesh.

The completion cost of the project was 1620 crores based on the

debt-equity ratio of 70:30. The total number of employees working in

Baspa-ll is 139 and is divided into three major categories i.e., engineers,

highly skilled workers and unskilled workers. Highly skilled workers

constitute the highest percentage whereas unskilled workers constitute the

lowest percentage in the total workforce.

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Himachal Pradesh State Electricity Board (HPSEB) is the main

agency engaged with the exploitation of the hydel power in the State, and

came under existence on the first day of September, 1971 in accordance

with the Electricity (Supply) Act, 1948 with the purpose of promoting the

coordinated development of power potential, generation and distribution of

electricity with the State in most efficient and economical manner through

various functional agencies.

Since coming into existence HPSEB has indeed come a long way.

Presently, the organization is engaged in varied spheres of activities related

to generation, transmission and distribution of power in the state. Bhaba

(Sanjay Vidyut Pariyojana)-120 MW is the only major project under the full

control of HPSEB till date. With the completion of the project in March 1989,

total generating capacity of HPSEB has doubled. The project is located in

the tribal district of Kinnaur in Himachal Pradesh. The Project utilizes the

water of Bhaba 'khad', a tributary of the river Satluj. It is Asia's first medium

hydro-electric project which except for its head-works, desilting tank and

reservoir, everything the project is underground. It is run-of-the-river

scheme involving no displacement of population, no submergence of land

or forest and none of the other environmental problems associated with it

as such.

The initial cost of the project was estimated at Rs. 55.84 crores and

the actual completion cost of thd project was Rs. 175.26 crores. At present,

the total number of workers working in the project is 188, as against the
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requirement of 278 employees. The employees are categorized in technical

and non-technical staff.

Major share of harnessed potential in Himachal Pradesh comes

under Central sector. National Hydro-electric Power Corporation (NHPC) is

the leading agency of Central sector working in Himachal Pradesh for the

development of hydropower potential. It has also become the single largest

organization for hydropower development in India with capabilities to

undertake all the activities from investigation to commissioning, and finally

setting-up of hydropower projects. The 540 MW Chamera hydropower

project stage-l is one of the largest project on river Ravi in Chamba district

of Himachal Pradesh executed by National Hydro-electric Power

Corporation Ltd. The actual construction work of the project commenced in

1985 and the project was commissioned in March 1994 with the completion

cost of Rs. 2114.02 crores. The total number of workers employed in

Chamera-I hydel project is 372 and are divided into skilled, unskilled and

highly skilled or administrative staff. Highly skilled labour constitutes the

highest percentage in total workforce.

Thus, Government of Himachal Pradesh is vigorously promoting

large-scale development of hydropower in Himachal Pradesh through

changes in policies, all driven to involve large private entrepreneurs.

Over the last few years, hydropower project development has gained

momentum with the Himachal Pradesh Government's multi-pronged

approach of involving more stakeholders in alleviating the causes for the

delay, encouraging private developers, pushing the concerned authorities to

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expedite statutory clearances, engaging developers and the ministry is

constantly involved in a dialogue to handle environmental and rehabilitation

issues and developing conducive policies along the way.

Inspite of this, there are still several issues that need to be

addressed by stakeholders, including promoters, so that the identified hydro

potential is fully developed in a scheduled time frame.

Various issues have been raised, time and again, against large

hydro-electric projects in the State. Some of the issues relate to inadequacy

of funds, high transmission and distribution losses, delay relating to land

acquisition, environment and forest clearances, geological surprises,

resettlement and rehabilitation issues, time and cost overrun, radical trade

unionism etc. These issues are well known, while some of the issues have

been addressed, others are still being debated at several forums for

appropriate solution.

There are inherent losses in transmission and distribution of

electrical energy from generating stations to the ultimate consumers.

Transmission and distribution losses can be arrived at by measuring the

difference between units injected into system and the units billed to the

ultimate consumer. These losses occur on account of technical and

managerial reasons. T&D losses occur at several places in the distribution

system. The main factors that contribute to high technical losses are low

investment in distribution system, large scale rural electrification, ad-hoc

expansion of the system, too many transformation stages, low quality of

equipment, improper load management and owing to distribution

transformers not located at load centres.

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The factors contributing to high commercial losses are theft /

pilferage by existing consumers, incorrect estimation of energy

consumption in respect of unmetered connections, defective metering,

meter reading errors, poor revenue collection and lack of accountability.

The main issue in sub-transmission and distribution system or rather the

issue confronting the power sector as a whole, is the reduction of aggregate

technical and commercial losses to acceptable minimum level.

Various mitigation measures have been taken by executing agencies

of hydropower projects to minimize the effects of projects construction since

various issues and barriers to large scale development of hydropower have

been identified and the policy changes to mend these barriers are now

required.

7.2 CONCLUSION:

Himachal Pradesh is extremely rich in Hydel resources. The State

has accorded top priority from fifth plan onward because it will not only

meet the increasing power demand within the state but also bridge the gap

in the demand and supply in the northern region as a whole. Viewed in this

context, Himachal Pradesh with its vast untapped hydel potential can play a

significant role if not in entirely eliminating, atleast in narrowing down the

yawning gap between demand and supply of power in the country as

general and Northern region in particular.

The generation of hydro-electric power has created a significant role

in the industrial progress of the state. It has not only helped to increase the
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momentum of industrialization but it also has given the whole process a

new dimension, as the development of medium and large scale industries in

the state has been possible only because of hydro-electric power.

Despite having a huge potential in its five river basins, nearly 30

percent has been exploited by various agencies and nearly 70 percent

untapped potential awaiting exploitation. The potential of Chenab river

basin has not been exploited yet, which comprises nearly 13 percent of the

total identified potential.

Major portion of harnessed hydel capacity in Himachal Pradesh is

under the control of Central sector followed by Joint sector. HPSEB (state

sector) has only 2 percent of assessed capacity under control.

In the present study, performance of four major hydro power projects

namely: Bhaba (Sanjay Vidyut Pariyojana), Nathpa Jhakri Hydropower

Project, Chamera-I and Baspa-ll hydropower Projects have been analyzed.

In all the four major projects except Nathpa Jhakri hydropower project, the

highly skilled or technical staff constitutes the highest percentage of total

employment.

Performance of these hydropower projects on the basis of capacity

utilization, leads to the conclusion that Chamera-I Hydel Project stands in

first position as it utilizes its capacity efficiently throughout the years and its

performance has never gone below 100 percent. Whereas Baspa-ll and

Nathpa Jhakri hydel projects occupy second and third position respectively.

Under the prevailing conditions the overall performance on the basis of

capacity utilization of these projects showed satisfactory results.

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Per employee productivity is highest in Nathpa Jhakri power project

and lowest in Bhaba hydropower project. Whereas, Baspa-ll hydel project

has more labour productivity than Chamera-I. The difference in per

employee productivity of these projects may be due to the uses of different

mechanized methods of production, different executing agencies and

different years of commissioning of these hydel projects.

The amount of capital required to produce 1 MW of energy is lowest

in Nathpa Jhakri followed by Baspa-ll Power Project. It is highest in Bhaba

Hydel Project where capital invested is Rs. 175.26 crores to produce 120

MW of energy in a year.

A significant difference in capital investment per worker in these

hydropower projects has been arrived at. Capital-labour ratio is highest i.e.,

13.08 in Nathpa Jhakri Power Project followed by Baspa-ll and Chamera-I.

While it is lowest i.e., 0.93 in Bhaba hydropower project.

1500 MW Nathpa Jhakri Power Project (a joint sector hydel project)

took 15 years to become operational, whereas 300 MW Baspa-ll hydel

project under private sector and 120 MW Bhaba project exclusively a state

sector project took 12 years and 7 years respectively to become

operational, it is interesting to see that 540 MW Chamera-I hydropower

project under NHPC (Central sector executing agency) took only 9 years to

complete which shows the efficiency of NHPC in the development of

hydropower projects.

1500 MW Nathpa Jhakri Power Project ranks on top with 100 MW

annual production, followed by 540 MW Chamera-I with 60 MW annual

production. Whereas Bhaba (SVP)-120 MW state sector project ranks last

with average annual yield of only 17 MW.

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On the basis of various developmental indicators and performance of

hydropower projects under study, it has also been found out that Nathpa

Jhakri Power Project can be a role model project in Himachal Pradesh.

It is well recognized fact that availability of electric power is an

essential requirement for the development of the State. With the fast

depleting fossil-fuel, the need to increase and shift dependence on

hydropower generation for development and prosperity of the State has

become compulsive. But there are many bottlenecks at pre-construction

stage and during the construction stage which are responsible for not

achieving targeted capacity addition.

-f Dislocation of project affected people is major factor leading to time

and cost overrun. Nathpa Jhakri and Chamera-I hydro-electric projects

have already faced this problem, where the environmental activist resisted

more than the local residents. The common causes of such resistance are

poor local area studies, lack of communication with the affected parties in

their local language and insufficient infrastructure development at the sites

where the residents are relocated. The cost escalation in Nathpa Jhakri

power project was mainly due to delay on account of protest for higher

compensation by the project affected people.

Geological surprises have been yet another cause for delays in the

construction of projects. Rock slides, floods, sudden cloud bursts are some

of the common surprises. Due to setting-up of large number of projects in

the State, land slides have become a regular occurrence in the State.
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Despite having a huge potential of hydropower, the State has to

borrow electricity from the neighboring States in winter. The State is also

not getting the full benefit of employment from these projects as some of

these projects have not implemented the provision to employ 70 percent of

the total workforce from Himachal.

Besides this, transmission and distribution losses (T&D losses) are

also prevailing in the State. The transmission system as existing is

inadequate to cater to large number of small projects which will need to be

developed in Himachal Pradesh. Evacuation is required at manned sub-

stations. Sub-stations are also limited and located very far from the projects

requiring longer transmission lines. Besides, high cost towards forest

compensation and long transmission lines, there are transmission losses.

T&D losses which were more than 20 percent in 2001-02

significantly reduced to 14 percent In 2006-07. It became possible due to

the State Government initiative in this particular direction to reduce

aggregate commercial and technical losses. Memorandum of

Understanding (MoU) signed between Government of Himachal Pradesh

and Government of India to reduce T&D losses by one percent every year

from the year 2002-03 onward seems achievable in the present situation.

Comparative analysis of T&D losses of Himachal Pradesh, Jammu

and Kashmir and Uttaranchal also revealed that Himachal Pradesh State

Electricity Board has least T&D losses for the last five years. Himachal

Pradesh State Electricity Board has also been able to maintain the T&D

losses less than the ail India average of T&D losses.

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, ^ As far as the economic impact of hydropower projects is concerned,

majority of local people and management agreed with the view that due to

establishment of hydropower projects employment opportunities and road

facility to nearest villages from project sites had increased significantly.

More than half of the respondents from local people showed their

disagreement with the development of local infrastructure and change in

land use pattern due to hydropower projects. . Whereas management

agreed with the view that projects had promoted the development of local

infrastructure by providing the facilities of schools, health-care centers and

better road facilities etc. Management were also of the view that due to

setting-up of these hydropower projects the land-use pattern had changed

and the land which was earlier utilized for agricultural purpose was now

used for commercial purpose.

Majority of respondents were satisfied with the increase in income

levels of local people. But at the same time they were of view that it was not

due to setting-up of these projects but because of awareness and increase

in their level of education.

More than 3/4^*^ of respondents from local people viewed that

hydropower projects affected the crops negatively. But a few respondents

did not agree to it and of the view that the hydropower projects were

underground and therefore had no impact on land and agricultural activities.

Most of the people agreed that projects had helped in intensifying the

process of urbanization in nearby areas. But a few respondents disagreed

with the same and were of the view that these projects were located far
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away from urban areas in difficult hilly terrains. Therefore it took a long time

to intensify the process of urbanization in these areas, which were

geographically difficult to access.

Majority of respondents from local people showed their

dissatisfaction with the change in occupation of local people due to setting-

up of these hydel projects. More than 1/4"" of respondents were of the

opinion that there is some change in the occupation of local people who

had lost their houses and land for the sake of setting-up of these

hydropower projects.

Hydropower projects in the opinion of people have adversely

affected the environment to a large extent. They felt that the hydropower

projects had adversely affected the ecology of the region and had resulted

in soil erosion, water shortage etc. Whereas management disagreed and

were of the view that every effort had made by the project authorities to

check soil erosion. They were also of the view that the projects had

definitely played some role in disturbing the ecology but to some extent.

A significant number of respondents showed their dissatisfaction

with the steps taken to overcome the environmental hazards by the

executing agencies of hydropower projects. People pointed out that project

authorities had done some plantation in areas surrounding the project sites,

which was not enough to overcome the environmental hazards. But

management's respondents did not admit to the negative environmental

consequences due to setting-up of these projects. The authorities of hydel

projects strongly urged that as a measure of environment protection,

massive compensatory afforestation was taken up in lieu of forest land

which was lost on account of project construction.

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Views of management regarding socio-economic and environmental

impact of these hydropower projects varied significantly from that of local

people.

Majority of the respondents from local people and almost all the

respondents from the management were of the view that hydel projects are

helpful for the development of tourism in the areas surrounding the projects

and for the overall development of state's economy by way of earning much

needed revenue.

As far as the overall impact of hydropower projects on people and

state economy is concerned, people seemed less satisfied compared to

management who were of the opinion that hydropower projects have

significantly contributed in the overall development of the state.

No change was noticed in the customs and cultural life of local

people living in nearby areas due to these hydropower projects.

An analysis reveals a significant variation in percentage response of

local people and management.

The projects under study have taken various measures to nullify the

effects which arise due to construction of projects. These efforts of the

project lead to improvement of infrastructure, public health and socio-

economic development of the area as well as local people.

Thus, it become evident that the benefits occurred from hydropower

projects are so immense that they substantially out weigh the costs of

immediate human and environmental disruptions.

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7.3 SUGGESTIONS:

On the basis of above said conclusion, the following suggestions can

be given:

• For speedier harnessing the huge potential of hydropower in

Himachal Pradesh, the State Government should help the project

authorities by getting all requisite clearances, acquiring the land and

building infrastructure as a part of their contribution to the

development of hydel resources. This would enable the private

investors to take up the construction of the project without loss of

time. The cost incurred could be debited to the cost of the project

and recovered from the private promoters. In order to tap the vast

hydel resources in northern region, a special incentive by way of

additional return on equity could also be considered.

• A time schedule for various clearances be set forth. The clearance

should contain minimum ambiguities or conditionalities to avoid the

uncertainties in general and time and cost overrun of projects in

particular.

• It is important to note, that Himachal Pradesh is a seasonal power

producer. In summer the dams are full and it sells power, but in

winter, it needs more power, which it buys back at a higher price.

This pattern will continue in the future, and within the frame work of

the Electricity Act, it is in the interest of the State to enter into long-

term understanding with its neighbours of J&K, Punjab, Haryana and

Delhi which consumes largest share in electricity. It is also a good

market situation that its neighbours need more power in summer.

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both for domestic and agricultural use and Himachal Pradesh has

surpluses at that time. On the other hand, power situation in the

plains is better in winter, and Himachal Pradesh will need to augment

its own resources by harnessing alternate sources like, setting-up of

thermal power plants and nuclear power plants, which can cater to

commercial and industrial use, whereas the domestic consumption

can be supplemented by tapping wind energy, solar energy, and

encouraging the use of bio-degradable waste to produce energy.

This can improve energy situation of the state not only in its lean

power production period of winters but also can considerably reduce

the burden of power crunch in general.

There must be significant time gap between the completion of the

project and inauguration of another project. A planning should be

made for the future 20-30 years in such a manner that a large project

should be taken after every completed project so that all the

employees of the projects can be shifted in addition to some new

recruitment, and skills acquired by the workers can be utilized, for

the early construction of the project.

Mini-micro hydropower projects should be constructed on the

tributaries so that the pressure of silting in major hvers can be

reduced to some extent.

The existing state of affairs must be modified in such a manner so

that the share of Himachal Pradesh is increased at least to the level

of 25 percent in all hydel projects located in the State.

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The degree of awareness concerning the public hearings among the

local residents of the region should be assessed. Public hearings are

now a statutory requirement in respect of such projects, which are

essentially in the context of an environmental clearance. The

hearings should also cover the displacement / rehabilitation aspects.

'Rehabilitation clearances' similar to the environmental clearance

should be made a statutory condition before beginning work on a

major hydro-electric project.

The social costs inflicted by projects often fall on poor and

disadvantaged sections, particularly, tribal communities, whereas the

benefits accrue to others, usually to more prosperous people in the

command area. Thus, the project authorities should ensure equal

distribution of benefits to all affected people.

The project area development for the benefit of project affected

persons / families be clearly spelt out and followed strictly in

particular direction by the project authorities, and local administration

should help in a strict implementation of the same.

Environmental consequences of hydropower projects can, however,

be minimized if during preparation of the detailed project reports,

detailed hydrological and geological studies are carried out based on

recent data rather than historical extrapolated data as is common

practice. Inadequate survey and investigation can haunt a project

even after it has been commissioned and cause problems in its

operations.
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Modern environmental conservation techniques should be adopted

for a better keep-up of developmental projects such that these

projects become sustainable in the long-run.

Transmission and distribution losses occur in the process of

supplying electricity to consumers due to technical and commercial

losses. Technical losses are inherent in system and can be reduced

to an optimum level. So the efforts should be made in this direction

by preparing long-term plans for strengthening and improvement of

the distribution systems along with associated transmission system.

Theft or pilferage of energy is one of the major factors behind the

commercial losses (T&D) in the State. Apart from involving flying

squads to detect cases of malpractices and pilferage of energy, an

urgent and separate programme of action comprising legislative

changes, enforcement of punitive measures and enhanced

accountability at the field level of utility should be implemented in the

state to reduce these losses.

The State Government should develop more and more industrial

areas in the vicinity of hydropower projects, so the losses arises due

to long transmission lines can be avoided to the extent.

The country should boost its friendly relations with China In real

sense. Because the Satluj river, which originates from Mansarovar

lake in China, such that the state government can take preventive

steps for any occurrence of a flood in the river and can prevent

heavy losses to the projects on account of silting or otherv\/ise.

Long-term agreement should be signed by the Indian government

with neighboring countries so that the full potential of hydro-electric

can be used in long-run.

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It is well known that hydropower projects can play a very crucial role

towards contributing to the state as well as national demand for energy.

However, these projects have not met out the expectations of local people

in Himachal Pradesh. These projects before implementation need some of

the modifications in their organizational set-up, keeping in mind the

expectations of the local people from these hydropower projects, which can

further go a long way. in improving the performance, efficiency and

effectiveness of the projects. Thus, if these socio-economic aspects of

hydropower development are kept in mind during planning as well as the

implementation stage, the results can be astonishing not only in terms of

better acceptability of the project for the local community but also on the

whole promote the overall development of the region.

7.4 SUGGESTED AREAS FOR FURTHER RESEARCH:

The present study had been undertaken with some specific

objectives. However it has succeeded to certain extent in analyzing some

vital aspects concerning hydropower in Himachal Pradesh and deserves a

critical opinion by the researchers in this field. Further research can take up

a study of:

• Environmental impact of Large Hydro-electric Projects in Himachal

Pradesh.

• Social Cost-Benefit Analysis of Major Hydropower Projects in

Himachal Pradesh.

• Mini and Micro Hydel Projects in Himachal Pradesh.

• Impact of Hydropower on Tourism in Himachal Pradesh.