Small Hydro Projects Himachal Pradesh

Small-Hydro Power: The Basics

About Us

Sharestha Hydro Projects Pvt. Ltd. Is one of the leading and trusted name in the field of Hydro Projects in Himachal Pradesh.

We are a team of Consultants, Engineers and Surveyors having wide range of expertise in commercial aspects, operational management of small Hydro Power projects.

Himachal at a Glance

The northern state of India, Himachal Pradesh has a hilly Topography. This state is among the favourite tourist spots in India.

The total area of Himachal is more than 55,673 sq. km.

It is surrounded by landforms from all sides. The Topography of the land is mainly hilly. The average altitude of the region ranges

from 450 meter and 6500 meter above sea level.

The total population of Himachal Pradesh as per 2001 census was 61,77,248.

Himachal at a Glance…cont…

MAJOR RIVERS AND TRIBUTARIES • Yamuna & Giri, Tons, Bata, Pabbar. Beas & Solang, Manalsukh, Sujoin, Fozal Nalla,

Sarvari, Parvati, Sainj. Satluj & Spiti, Baspa, Tidong, Ranger, Kaushly, Khira

Ka Nalla, Dabar Kha. Chenab & Chandra, Bhaga, Sanjari Nalla, Miyar Nalla,

Chobia, Kalicho, Harser, Drati, Marshu, Cheni & Sach. Ravi & Budhil, Tundah, Shal, Siul & Seewa.

Aprox 33 big and small rivers exist in the territory of

Himachal Pradesh.

Himachal at a Glance…cont…

Transport Infrastructure

(a) Rail head Broad gauge - Kalka, Pathankot, Una. Narrow gauge - Shimla, Joginder Nagar. (b) Airports Jubbar Hatti (Shimla) Bhunter (Kullu) Gaggal (Kangra).

(c) Motorable Roads 19,310 Kms.

Why Small Hydro Project?

Reliable, eco-friendly, mature and proven technology. More suited for the sensitive mountain ecology. Can be exploited wherever sufficient water flows - along small streams, medium to small rivers. Does not involve setting up of large dams or problems of deforestation, submergence or rehabilitation. Non-polluting, entails no waste or production of toxic gases, environment friendly. Small capital investment and short gestation period. Minimal transmission losses. With careful planning and adoption of simplified and standardized designs, SHP installations are becoming increasingly competitive with thermal, diesel or gas based power generation.

Micro Hydro Project..History.

Electric supply at the time of formation of the state in 1948 was available only in the Capitals of the erstwhile princely states and the connected load at the time was less than 500 KW. Thus the organization of the power utility in the state began relatively recently and first electrical division was formed in August,1953 under the Public Works Department.

Subsequently a department of M.P.P. & Power was formed in April, 1964 after realizing the need for exploiting the substantial hydel potential available in the river basins.

The passing of the Electricity Act 2003 (EA 2003) has opened up the possibilities of new markets for electricity generators and this is largely responsible for the confidence of power generators this time around. The EA 2003 aims to create a competitive electricity market in the country, and the central measure for this is Open Access. In the Open Access system, a power generation company can sell power to anyone in the country and not just to the concerned SEB.

Micro Hydro Project..Today.

SMALL HYDRO DEVELOPMENT PROGRAMME IN HIMACHAL PRADESH

Himachal Pradesh has a vast hydel potential to the tune of approx. 21,000 MW (approx. 750 MW under Small Hydro Sector) in the five river basins, 6037 MW harnessed so far. Small hydropower has been recognized as re-liable, eco-friendly and renewable energy source, which can be exploited in decentralized and cost effective manner. Himachal Pradesh Government attaches significant importance to the exploitation of small hydro potential.

ONGOING PROJECTS PRIVATE SECTOR PARTICIPATION

The State Government has taken several initiatives to encourage private sector participation in small hydro power development. Himachal Pradesh is among the few States, which has streamlined and crystallized the various procedures to minimize the bottlenecks and has also finalized the Implementation Agreement and Power Purchase Agreements for small hydro projects.

The process of exploitation of hydel potential in small hydro sector through private sector participation began during 1995-96. Since then, the allotment of project sites has been a continuous process and till 31st Dec, 2006, MOUs for 299 projects have been signed . 93 projects have been cancelled/ declared unviable for various reasons. At present 206 projects with an aggregate capacity of 547.50 MW are in existence , out of which eight projects with an aggregate capacity of 20.65 MW stands commissioned and 90 projects with an aggregate capacity of 299.40 MW are at Implementation Stage.

Private Sector Participation

PROJECTS TO BE OFFERED FOR PRIVATE SECTOR PARTICIPATION

• Projects up to 5.00MW are handled by HIMURJA in following modes: -Projects Identified by the IPPs as self identified projects. -Projects Identified by HIMURJA. Small Hydro Project up to 2.00MW capacity shall be exclusively reserved for

the bonafide Himachali and Cooperative Societies comprising of the bonafide Himachali.

While allotting such projects upto 5.00 MW, preference will be given to the

bonafide Himachali. If there are more than one Himachali (Applicant), preference shall be given to the person of the area, or the Distt.

Not more than 3 projects shall be allotted for implementation to an IPP .

Project Cost per MW works out to 7 to 9 crores.

Micro Hydro Project How Does It Work?

Water from the river is channeled through a settling basin, which helps to remove sediment that could harm the turbine. The water then flows into the Fore bay Tank where it is directed downhill through a pipe called a penstock. When the water reaches the bottom, it drives a specially designed turbine to produce the electricity.

Micro Hydro Project How Does It Work?

Forebay Tank

Penstock

Turbine

Power Station

Small Hydro Project

Private Sector Participation Banefits to the Developer…

The Developer will be permitted to establish, own, operate and maintain the Project for a period of 40 yrs, extendable by 20 yrs. Thereafter the Project shall revert back to the State Govt free of all encumbrances.

1MW Project produces: Approximately 87 lack units/annum in full capacity (24000 Units*365 Days).

Private Sector Participation Banefits to the Developer…

HPSEB shall purchase Power @ Rs 3.27/unit.

The Project shall be Insured against natural / un- natural calamities.

Projects above 5 MW have the option to sell their produce to Haryana / Punjab which purchases at Rs.4/unit. PPA executed for 1 year at a time so you may decide as to whom to sell.

Capital Subsidy will be 45% of Project cost limited to Rs 2.25 Crores + 37.50 Lacks per MW above 1MW or the Project may get Interest subsidy, ie:1 Mw gets 7.5 % interest subsidy.

No Tax on Income for 10 Years thereafter 30% exempted for another 10 years.

Revenue Projection – 1MW

COST OF PROJECT PROJECT COST OF 1MW IS APPROXIMATELY 7 to 9 CRORES SUBSIDY ON PROJECT SUBSIDY FROM GOVT OF INDIA = 2,35,000,000 i.e. 2.35 CRORES SUBSIDY FROM CDM WORLD BANK= @65% (Of average production capacity annually)

56,16,000 UNITS * 60 PAISE/ UNIT =33,69,600 RUPEES i.e. 33 Lacs Seventy Thousand per year (FOR 10 YEARS) i.e. 3 CRORES 37 LACS ONLY

TOTAL SUBSIDY 2,35,00000 FROM GOI (ONE TIME SUBSIDY) +3,37,00000 FROM CDM (IN 10 YEARS) = 5,72,00000 TOTAL SUBSIDY i.e. 5 CRORES SEVENTY TWO LACS ONLY

Actual Investment Approximately Rs. 3 Crores

Revenue Projection – 1MW

Production Capacity 1000 UNIT PER HOUR i.e. 1000*24=24,000 UNITS PER DAY i.e. 24000*30=7,20,000 UNITS PER MONTH i.e. 7,20,000*12=86,40,000 UNITS PER YEAR

Rate/Unit = 3.27/- (Proposal recently accepted for the rate to be increased to Rs.3.27/Unit from 2.97/Unit) 86,40,000 Units*3.27 = 2,82,52,800/-

Assuming only 60-70% production per year, @65% = 1,83,64,320/-. Expenses @15 - 20% of total revenue (Operating Cost + Govt Royalty) Net Profit = 1,83,64,320-25% = 1,37,73,240 (One Crore Thirty Eight Lacs Only per

Year).

A 1MW project will be at its break even point in about 3 years time from the inception of production.

Revenue Projection – 5MW

COST OF PROJECT PROJECT COST OF 5MW IS APPROXIMATELY 40 CRORES SUBSIDY ON PROJECT SUBSIDY FROM GOVT OF INDIA = 3,85,000,000 i.e. 3.85 CRORES (Rs.2.35 cr for 1st MW and Rs.37.50Lacs every additional MW) SUBSIDY FROM CDM WORLD BANK= @65% (Of average production capacity

annually ) =2,80,80,000 UNITS * 60 PAISE/UNIT =1,68,48,000 RUPEES I e 1 CRORE SEVENTY LACS PER YEAR ( FOR 10 YEARS ) ie 17 CRORES LACS FIFTY LACS ONLY

TOTAL SUBSIDY 3,85,00000 FROM GOI (ONE TIME SUBSIDY) + 17,50,00000 FROM CDM (IN 10 YEARS) = 21,35,00000 TOTAL SUBSIDY i.e. 21 CRORES TWENTY FIVE LACS ONLY

Actual Investment Approximately Rs. 19 Crore.

Revenue Projection – 5MW

Production Capacity 5000 UNIT PER HOUR i.e. 5000*24=1,20,000 UNITS PER DAY i.e. 1,20,000*30=36,00,000 UNITS PER MONTH i.e. 36,00,000*12=4,32,00,000 UNITS PER YEAR Rate/Unit = 3.27/- (Proposal recently applied for the rate to be increased to Rs.3.27/Unit from 2.97/Unit) 4,32,00,000 Units*3.27 = 14,12,64,000/-

Assuming only 65-70% production per year, @65% = 9,18,21,600/-. Expenses @15-20% of total revenue (Operating Cost + Govt Royalty) Net Profit = 9,18,21,600 -20% = 7,34,57,280 (Seven Crore Thirty Five Lacs Only per

Year).

A 5MW project will be at its break even point in about 3 years time from the inception of production.

Private Sector Participation Time Requirements…

The Project becomes operational in about 3 to 4 yrs.

It takes about 2 yrs to : Obtain MOU, measure water level (measured for 2 lean seasons) then Detailed Project Report (DPR) is prepared.

Another 1 to 2 yrs for obtaining Techno Economic clearance, Departmental clearances, Implementation agreement, land acquisition, Power purchase agreement, loan acquisition (depending upon its size).

Our Services

Site identification based on viability Allotment of projects Preparation of detailed project reports, pre-feasibility

reports Detailed survey study of site by a team of experts To obtain various NOC from department Acquisition of land (Private/Govt) Techno Economic Clearances (TEC) Implementation Agreement (IA) Power purchase agreement for buy back of electricity (PPA) Construction of projects & other work related to hydro

power projects. Sale/Purchase of Projects.

Our Projects

Nain, Stream of Beas - 1 MW, Baijnath, Kangra

Manuni, Stream of Beas - 2 MW, Dharamshala, Kangra

Barahal Stage1, Stream of Beas – 2 MW, Dharamshala, Kangra

Barahal Stage2, Stream of Beas – 2MW, Dharamshala, Kangra

Dehar, Stream of Beas – 1 MW, Dharamshala, Kangra

Contact Us

Atul Sareen

Sharestha Hydro Projects Pvt. Ltd.

Hamirpur, H.P.

Mob - +91 81 46 56 31 57

LandLine - +91 11 45453003

email – shpplhp@gmail.com

atul_sareen24@yahoo.co.in