Measures to promote Hydro Sector

Measures to promote Hydro Sector

Question: What is the current capacity of India`s hydropower energy?
(a) 45,400 MW
(b) 45,700 MW
(c) 45,900 MW
(d) 45,200 MW
Answer: (a)
Related Fact:

  • Union Cabinet chaired by the Prime Minister Narendra Modi has approved measures to promote Hydro Power Sector.
  • These include declaring the Large Hydropower Projects (HPO) as part of non-solar Renewable Purchase Obligation (RPO).
  • India`s current hydropower capacity is 45,400 Mega Watt (MW).

Key Decisions:

  • Large Hydropower Projects to be declared as Renewable Energy source (as per existing practice, only hydropower projects less than 25MW are categorized as Renewable Energy).
  • HPO as a separate entity within non-solar Renewable Purchase Obligation to cover LHPs commissioned after notification of these measures (SHPs are already covered under Non-Solar Renewable Purchase Obligation).
  • Budgetary support for funding flood moderation component of hydropower projects on case to case basis; and
  • Budgetary support for funding cost of enabling infrastructure i.e. roads and bridges on case to case basis as per actual, limited to Rs. 1.5 crore per MW for upto 200 MW projects and Rs. 1.0 crore per MW for above 200 MW projects.


  • As most of the hydro power potential is located in the higher reaches of Himalayas and North- East Region, it will result in overall socio-economic development of the region by providing direct employment in the power sector.
  • Another benefit would be of having a stable grid considering 160 GW capacity additions by 2022 from infirm sources of power like solar and wind.

Hydropower in India:

  • India is endowed with large hydropower potential of 1, 45,320 MW of which only about 45,400 MW has been utilized so far. Only about 10,000 MW of hydropower has been added in the last 10 years.
  • The hydropower sector is currently going through a challenging phase and the share of hydropower in the total capacity has declined from 50.36% in the 1960s to around 13% in 2018-19.
  • The importance of hydropower is increasing even more as the country has targeted to add 160 GW of intermittent Solar and Wind power by 2022 and 40% of the total capacity from non-fossil fuel sources by 2030 to honour its Nationally Determined Contribution for Climate Change.


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