The Union Cabinet recently approved a Small Hydro Power Development Scheme, with an outlay of ₹2,584.60 crore for five years till 2030-31. It will support installation of small hydro power (SHP) projects with an approximate capacity of 1,500 MW. The initiative is expected to benefit hilly and North Eastern states with potential for such projects.
With an installed capacity of up to 25 MW, the small hydro power plants are renewable energy projects, considered decentralized, reducing the need for long transmission lines which eventually helps lower transmission losses. The government claims that this scheme will revitalize the SHP sector and accelerate the exploitation of available potential. The scheme is projected to be environmentally sustainable as the projects avoid large-scale land acquisition, deforestation and the displacement of communities. Furthermore, it is expected to promote socio-economic development in remote areas by boosting local investment and creating long-term employment, given that project lifespans typically range from 40 years to over 60 years.
The Centre will provide financial support of up to 30 per cent of the project cost for hilly states and districts along international borders. In other states, the support will be 20 per cent of the project cost. An additional `30 crore has been allocated to assist state and Central government agencies in preparing detailed project reports.
However, experts and past experiences raise doubts about the claims that SHP projects are environmentally sustainable. Critics argue that these projects receive significant exemptions from environmental regulations, including public hearings. Evidence suggests that past SHP projects have been manipulated to appear eco-friendly, leaving affected communities in difficult situations and increasing the likelihood of human-animal conflicts.
Misleading environmental claims
Small hydro power projects are conditionally exempted from environmental regulations such as from environmental impact assessment (EIA), environmental clearance (EC), and public consultations in India. It opens the door of manipulation.
According to the EIA Notification of 2006, small hydro power projects (≤25 MW) are generally classified as category B projects, which means they get cleared at the state level. Some smaller projects, classified as B2, may be exempt from detailed EIA but are not necessarily exempt from EC itself. If a project is located in eco-sensitive areas (such as national parks or wildlife sanctuaries), EC is mandatory regardless of size. Under the 2006 framework, B2 category projects are not required to conduct an EIA. Reports suggest that a majority of small hydropower projects are often categorized as B2 projects. Public hearings are not required for B2 projects.
Experts disagree with the government’s claims that SHP projects will be environmentally friendly and socio-economically beneficial for the Northeast and other hilly areas.
Himanshu Thakkar from the South Asia Network of Dams, Rivers and People (SANDRP) argues that the government’s claims are misleading, given current policies do not require environmental, social or disaster impact assessments for such projects. He says there is no credible public consultation process in place, meaning local communities will bear all adverse effects from projects imposed on them without their consent. Thakkar wonders how SHPs will benefit local populations since profits will go to private companies while electricity will be supplied to the grid.
Professor Nilay Khare from Maulana Azad National Institute of Technology Bhopal (MANIT), Bhopal, points at challenges such as high costs, environmental concerns, long gestation periods and competition from solar energy associated with SHP projects.
Troubled past experiences
SANDRP has documented instances where several SHP projects in the Western Ghats exploited regulatory loopholes to bypass essential environmental assessments. Such actions not only undermine legal protections for the environment but also raise serious concerns about the long-term implications of these projects on the delicate ecosystems of the Western Ghats.
Additionally, details regarding submergence and rehabilitation of affected areas are often not disclosed until the last minute, leaving communities in precarious situations.
In the absence of public hearings, communities remain unaware of potential risks and become vulnerable to floods, droughts, submergence, loss of endemic and endangered species, increasing human-animal conflicts and isolation.
In 2011, the Karnataka High Court issued a stay on the construction of mini-hydel projects (MHPs) in the forest areas of the Western Ghats. This decision followed public interest litigations filed by conservationists, including the Western Ghats Environment Forum.
Conservationists raised concerns that the 25 MW limit for mini-hydel projects was being misused through ‘debundling’, which involves splitting larger projects into smaller ones to circumvent EIA. This practice was primarily observed in the Kageneri and Kanchankumari reserve forests, where exploitation of subsidies and preferential tariffs was reported. Additionally, carbon credits under the United Nations Framework Convention on Climate Change (UNFCCC) were also being sought, they claimed. By early 2013, the state government informed the high court that it had cancelled 10 controversial mini-hydel projects in the Western Ghats and decided not to permit any new plants. Elsewhere, the Himachal Pradesh High Court took suo motu cognizance of alleged environmental violations and construction irregularities associated with the 20 MW Rora Khadd Hydroelectric Project located in Yula village of Kinnaur district.
However, Arunachal Pradesh anti-dam activist Bhanu Tarak welcomed the decision to promote SHP projects in the Northeast, but with caution. “Alternatives to large hydro project is the future of Arunachal Pradesh but SHP must ensure full participation of local indigenous stakeholders for getting their consent,” said Tarak who led protests against big Siang Dam in the state.