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1. Small Hydro Projects
Himachal Pradesh
Small-Hydro Power: The Basics

2. 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.
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About Us

3. 
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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

4. 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.
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Aprox 33 big and small rivers exist in the territory of
Himachal Pradesh.
Himachal at a Glance…cont…

5. 
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.
Himachal at a Glance…cont…

6. 
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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.
Why Small Hydro Project?

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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..History.

8. 
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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.
Micro Hydro Project..Today.

9. PROJECTS TO BE OFFERED FOR PRIVATE SECTOR PARTICIPATION
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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.
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Small Hydro Project up to 2.00MW capacity shall be exclusively reserved for
the bonafide Himachali and Cooperative Societies comprising of the bonafide
Himachali.
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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.
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Not more than 3 projects shall be allotted for implementation to an IPP .
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Project Cost per MW works out to 7 to 9 crores.
Private Sector Participation

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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?

11. Micro Hydro Project
How Does It Work?

12. Forebay Tank

13. Penstock

14. Turbine

15. Power Station

16. Small Hydro Project

17. 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).
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Private Sector Participation
Banefits to the Developer…

18. 
HPSEB shall purchase Power @ Rs 3.27/unit.
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The Project shall be Insured against natural / un- natural
calamities.
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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.
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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.
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No Tax on Income for 10 Years thereafter 30% exempted for
another 10 years.
Private Sector Participation
Banefits to the Developer…

19. 
COST OF PROJECT
PROJECT COST OF 1MW IS APPROXIMATELY 7 to 9 CRORES
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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
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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
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Actual Investment Approximately Rs. 3 Crores
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TOTAL SUBSIDY
Revenue Projection – 1MW

20. 
Production Capacity 1000 UNIT PER HOUR
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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
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Rate/Unit = 3.27/(Proposal recently accepted for the rate to be increased to Rs.3.27/Unit from 2.97/Unit)
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86,40,000 Units*3.27 = 2,82,52,800/-
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Assuming only 60-70% production per year, @65% = 1,83,64,320/-.
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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).
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A 1MW project will be at its break even point in about 3 years time from the
inception of production.
Revenue Projection – 1MW

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COST OF PROJECT
PROJECT COST OF 5MW IS APPROXIMATELY 40 CRORES
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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
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TOTAL SUBSIDY
3,85,00000 FROM GOI (ONE TIME SUBSIDY)
+ 17,50,00000 FROM CDM (IN 10 YEARS)
= 21,35,00000
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TOTAL SUBSIDY i.e. 21 CRORES TWENTY FIVE LACS ONLY
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Actual Investment Approximately Rs. 19 Crore.
Revenue Projection – 5MW

22. 
Production Capacity 5000 UNIT PER HOUR
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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
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Rate/Unit = 3.27/(Proposal recently applied for the rate to be increased to Rs.3.27/Unit from 2.97/Unit)
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4,32,00,000 Units*3.27 = 14,12,64,000/-
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Assuming only 65-70% production per year, @65% = 9,18,21,600/-.
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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).
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A 5MW project will be at its break even point in about 3 years time from the
inception of production.
Revenue Projection – 5MW

23. 
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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).
Private Sector Participation
Time Requirements…

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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 Services

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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
Our Projects

26. 
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
Contact Us