Introduction:
Hydropower is one of the most common renewable, economic, non-consumptive, non-radioactive, non-polluting and environmentally benign sources of energy. Hydropower stations have an inherent ability for instantaneous starting, stopping, load variations, etc, and help in improving the reliability of power system. Hydro stations are the best choice for meeting the peak demand. The generation cost not is only inflation free but reduces with time. Hydroelectric projects have a long useful life extending over 50 years and help in conserving scarce fossil fuels.
Our country is endowed with enormous economically exploitable and viable hydro potential, assessed to be about 84,000 MW at 60% load factor (1,48,700 MW installed capacity). In addition, 6781.81 MW in terms of installed capacity from small, mini and micro hydel schemes have been assessed. Also 56 sites for pumped storage schemes with an aggregate installed capacity of 94,000 MW have been identified. However only 15% of the hydroelectric potential has been harnessed so far and 7% is under various stages of development. Thus 78 % of the potential remains unexplored.

Fig.1. Rise and Decline of Hydro Share in India:
The decline of hydropower in the total power generating capacity of India is not due to non-availability of exploitable hydro potential but because of the following constraints that have slowed down the hydro development.
§Technical
§Financial
§Geological surprises
- Tariff related issues and managerial weaknesses (poor contract management)
- Problems due to delay in land acquisition
- Resettlement of project-affected families
- Law and order problems in militant-infested areas.
§Technical (difficult investigation, inadequacies in tunneling methods)
The maximum exploited potential is in the Northern and North Eastern Regions, followed by Eastern, Western and Southern Regions respectively. Bulk of the hydropower potential of the country exists in Himalayan region. Assessment of water resources, other investigation, survey and execution of such geological difficult project adds in terms of time and cost.
§Financial (deficiencies in providing long term financing)
A major part of money and time for developing hydro projects goes into civil work. The rough terrain and difficult work conditions ensure long gestation periods for such projects; in some cases, taking eight years or even longer. Large number of hydro projects taken up in the 1970's and 1980's still continue to languish resulting in large-scale time over-runs and heavy cost escalations year after year. In some cases the costs have gone up 5-6 times of the original estimates. However large hydro power plants are not being taken up for execution in sufficient number as the planning and construction period is very high. Therefore small hydropower projects have accelerated in recent years.