SOCIAL IMPACT ASSESSMENT OF SMALL HYDRO PROJECT …rexjournal.org.managewebsiteportal.com/files/documents/12-rex...PROJECT CLUSTER IN KULLU, HIMACHAL PRADESH . ... 5 Mangalam Energy

Rexjournal ISSN 2321-1067 Renewable Research Journal

Rexjournal Volume 3 Issue 1 Page 59

SOCIAL IMPACT ASSESSMENT OF SMALL HYDRO

PROJECT CLUSTER IN KULLU, HIMACHAL PRADESH .

H. S. Rauth (Research Fellow) & Dr. B. K. Choudhury ( IISWBM, Calcutta )

In small hydro power sector, India has got a tremendous scope of harnessing 15000 MW in various

states. In the Himalayan Range especially in Himachal, Uttranchal , J & K , North Eastern states a

large number of micro hydel/ small hydel sites are being implemented. Due to severe catastrophic

flood , landslides in Kedarnath, Uttarkashi , J&K, it has shown that there is something wrong in

dealing the river flow, environment, social influx, livelihood issue which are blatantly violated by

the developers who are taking mega size hydro projects by creating dams, tunnels, creating

infrastructure for many years without proper protection mechanism to the social and environmental

aspect The root cause of this devastation is mere neglect of social cause and lack of supervision

and monitoring. If smaller hydel projects are taken prudently, the above risk may not have such a

blunder. In same time frame china has developed 76000 small hydel stations for a total capacity

addition of over 100000 MW whereas in India, same capacity installation is 3600 MW in over 990

stations. The major drawback is the policy intermediation from the down to top and from top to

down approach . The major role for development is concerned by individual county level ( just

like Panchayet level of India) and a full fledged support function is underplaying the success . In

India , the private developers are playing the risk to take up projects hence knowingly /

unknowingly the pertinent issues ( EIA, SIA issues ) are deliberately not cared because of slacking

of legal loopholes which is controlled by nodal state/ Central Ministry beyond certain limits ( 100

Crores and above ) . Moreover below 25 MW range small hydro project plays various sizes at

different location. Especially in hilly terrain the multiplicity of projects below 5 MW are more.

Our focal point is to consider the SIA issues in these location. For projects beyond 5 MW to 25

MW, because of capacity detailed SIA/SIA are generally taken as per requirement of the Financial

Institution.

In current study we have taken a sample of few small hydro projects in Kullu region which is

historically, socially, tourism point of view is very sensitive . An all out effort is made to highlight

certain factors which may be taken into the purview of the stakeholders as we all have a collective

responsibility to keep our serene beauty of the hill states (Dev Bhumi) as beautiful as it is . It is a



heaven on this earth so we have to preserve the villages, forest, rivers , surrounding in scientific

way .By a mere chance of coincidence the author was in charge of implementation of small hydro

projects ( 42 in 8 states) which has prompted to make a realistic assessment and highlight the best

results from various projects. As a research study , it is being taken up with larger sample of 50

more projects in Kullu cluster . Some of the interesting project outcome has emerged from the

Kullu cluster for valuable information sharing to Financial Institution, Banks, NGO Sector State/

Central Agencies who are directly/indirectly concerned with Social sector development activities.

Before going to tap these issues, let us have a snap shot view on Kullu valley about its cultural ,

historical and other allied issues .

Kullu, or Kulu, is the capital town of the Kullu District in the Indian state of Himachal Pradesh.

It is located on the banks of the Beas River in the Kullu Valley about ten kilometres north of the

airport at Bhuntar. Kullu is a broad open valley formed by the Beas river between Manali and

Largi. This valley is famous for its temples, beauty and its majestic hills covered

with Pine and Deodar Forest and sprawling Apple Orchards. The course of the Beas river presents

a succession of magnificent, clad with forests of Deodar, towering above trees of Pine on the lower

rocky ridges. Kullu valley is sandwiched between the Pir Panjal, Lower Himalayan and Great

Himalayan range.



Historical importance

Kullu (1,220 m or 4,000 ft) was once known as Kulanthpitha - `the end of the habitable world`.

Beyond rose the forbidding heights of the Greater Himalayas and, by the banks of the shining river

Beas, lay the fabled `Silver Valley`.

Kullu got its first motorable access only after Indian Independence. The long centuries of seclusion

have, however, allowed the area to retain a considerable measure of its traditional charm. The road



through the Kullu Valley and Lahaul is now paved all the way, to connect and provide the major

access route between the northern Indian plains to Leh in Ladakh.

Fishing and Adventure

The Kullu valley has numerous places for trout fishing. These include Katrain, Raison, Kasol and

Naggar, then along the river Tirthan near Larji, in the Sainj Valley and in the Hurla khud.

NatureConservation[

Kullu is famous for its varied biodiversity.It has some of the rarest of animals like Himalayan

Tahr,Western Tragopan, Monal, Red bear etc.The Great Himalayan National Park (GHNP) is also

located here.The park was built in 1984. The park is spread over an area of 1,171 km2 that lies

between an altitude of 1500 to 6000m. In order to protect the flora and fauna of this Himalayan

area many places are declared as wildlife sanctuaries like : Khokhan Sanctuary Kais Sanctuary

Tirthan Sanctuary Kanawar Sanctuary Rupi Baba Sanctuary Great Himalayan National Park Van

Vihar Manali.

Energy Scenerio:

Keeping a backdrop on cultural , historical, environmental importance , we will focus on the energy

aspect which is very essential for socio economic prosperity as well as restoration of cultural

heritage without the discomfort of the local habitat for energy related project aspect. Position wise

, Kullu is away from the main land ( plain) ,therefore local need of fuel, gas (LPG) and electricity

are essentially needed to survive against the climatic need due to heavy cold wave and snow

cladding conditions.

In pre independence time, some small hydel projects (Mohra hydel project in J& K at 1906 , 630

kw at Chamba by the Young king ( Maharaja Bhuri Singh) after his study at UK in 1906) are

established as there was no other alternative during that time. The same project is declared by Govt

as heritage sites with other contemporary sites in Darjeeling ( Sidrapong, 1896 ), and other at

Mysore . In hydro power development in India , pre independence installations has provided a

gateway for further development in micro hydel plants in Himachal Pradesh as per the National

Hydro Policy being enacted from time to time since 1950 onwards. In late Eightyes , the Central

Government has come out with some innovative scheme which prompted accelerated development



of hydro power after 1994 onwards on similar lines of other developing countries . Most of the

schemes are further facilitated by Bilateral assistance program ( World Bank, LOC-I (1994-1999)

& LOC-II ( 1995-2001) through MNRE & IREDA Programme .

As per the latest information available , in various phases, the projects are allotted ( Below 2 MW

for Himachal Bonafide Developers ) and above ( 2-5 MW range) in phases . As per the latest data

approx 265 projects are allotted out of which Kullu district has obtained 85 projects with a capacity

potential of 200 MW in small hydro domain . Under World Bank finance program , IREDA has

sanctioned( 1994-2003) the following projects : ( Some of the projects have taken finance from

other banks also due to delayed implementation or beyond the terminal date commitment schedule

under World Bank Procurement compliance failure)

Sl no Project Name Capacity ( MW) Status Project location

1 Chevron Hydel Pvt Ltd 1.0 MW Commissioned Kullu valley (

Near Parvati

Project)

2 Himalayan Crest Power

Ltd ( I)

3 .0 MW Commissioned Sirmour District


Ltd ( II)



Ltd ( III)


5 Mangalam Energy Pvt Ltd 3 .0 MW Commissioned Sirmour District

6 Fourseasons Power Pvt

Ltd

2.6 MW Commissioned Kullu

7 Hateswari Om Power

Enterprises Pvt Ltd

1.0 MW Commissioned Near Rohru ,

chamba



8 KKK Hydro Power Pvt

Ltd

3 .0 MW Commissioned Kullu

9 Virender Dogra Power

Projects Pvt Ltd

1.0 MW Commissioned Near Chamba

10 Dhauladhar Hydro Power

Pvt Limited

0.15 MW Commioned District

Hamirpur

11 Siri Ram Sual Hydro

Project

1.8 MW Commissioned Kullu

12 Hari Son Hydel Project 5.0 MW Commissioned Kullu

13 Him Kailash Hydro Power

Pvt Limited

5.0 MW Commissioned Disdrict Chamba

14 Dharmasala Hydro Power

Pvt Limited

4.5 MW Commissioned District Kangra

15 Astha Projects ( India) Pvt

Limited

5 .0 MW Commissioned District Chamba

16 Dharmasala Hydro Project 4.5 MW Commissioned District Kangra

17 DLI Power Pvt Limited 4.5 MW Commissioned District Rampur

18 Sai Engineering

Foundation

5.0 MW Commissioned District Manali

Total Projects ( 18) 56.05 MW

If we consider only Kullu District , from IREDA /World Bank Program , there was a capacity

addition of 13.4.MW and small hydro sector investment of 134 Crores . If we consider other banks



( SBI, PNB, IOB, HP Co-operative banks ), capacity installation of 66.60 MW and potential

investment of 666 crores in Kullu district . Till on date this momentum is cumulatively to the tune

of 80 MW with an investment of 800 Crores which was otherwise difficult to get investment in

such a difficult terrain . As this is a new window for clean power generation with capital investment

portfolio with financial and fiscal benefit from Govt as well as World Bank , the momentum is

really noticeable but due to various reasons. This speed has got a jolt in between due to various

social , political and local problems ( same is being discussed later part of the paper ).

Some alarming signal ahead :

A recent audit report by the Comptroller and Auditor General (CAG) of India tabled in the

Himachal Pradesh Assembly on 22 February, 2014 tells the sordid tale of how compensatory

aforestation remains a neglected cause in this hill state.

Against the diversion of 4080 hectares of forestland for non-forestry purposes during the period

2006-2012, compensatory afforestation was expected to be carried out at the rate of two hectares

per hectare diverted. This means that such afforestation work should have covered 8160 hectares,

but audit scrutiny found that during the same period, the State Forest Department or the State

Compensatory Afforestation Fund Management and Planning Authority (CAMPA) carried out

such work on only 2789 hectares of land.

This indicates that the shortfall was as high as 66 per cent, which suggests that despite a lot of

rhetoric on conservation, Himachal is losing its forestland at higher rates than those of its lame-

duck efforts to compensate such loss.

As per the CAG report, the state Government has failed to comply the direction of court order to

manage catchment area r treatment and afforestation activity. The forest land bank details and year

wise expenditure is not properly maintained. The court order stipulates on 10 MW and above size

projects but the multiplicity of small projects in large numbers are posing a great threat besides

some of the positive attributes on social impacts and social infrastructure benefits.

Recovery from user agencies

The performance audit shows that despite the Supreme Court order in October 2002 regarding the

collection of Net Present Value from user agencies as a cost of ecosystem lost, as well as the cost



of Compensatory Afforestation activities and Catchment Area Treatment (in case of hydroelectric

projects having generating capacity of 10 MW or more), the State CAMPA failed to realize these

huge amounts from the user agencies.

Overall, a hydro power scheme adapts the natural variability of a river and its availability to

species, and gives this power to people. This requires careful and ongoing thought as consequences

can be far-reaching. Hydro power projects should consider the catchment affected, which requires

an understanding of the environment and any patterns of change, sometimes over a wide area.

Bigger storage and more heavily manipulated water flows usually have bigger impacts while run-

of-river schemes can avoid or reduce most of these effects, and are therefore much lower impact.

Now, we may highlight the impacts on small hydro projects mainly the following issues

ENVIRONMENTAL

Hydro power provides continuous renewable energy, avoiding the need for diesel or batteries.

Even small systems however will need concrete and clearing for construction, will divert water,

and will need an electricity network as the system itself must be near a river. If a dam is required,

changes to stream flow can affect ecosystems, sediment movements and flooding patterns. Hydro

power may require protection of upstream catchment, which can be positive for the environment.

SOCIAL

The technology for hydro power is well developed, with information available on designing,

building and maintaining various systems. The power is continuous, not intermittent like other

sources, and its reliability is particularly useful for productive activities. Hydro power can raise

issues of ownership and access rights for both water and land, and should be considered against

current and future demands such as agriculture, drinking water supplies, fishing and ecosystem

health. These interactions, together with the environmental impacts, can complicate decisions.

CUMULATIVE

Large catchments may be suitable for multiple hydro power systems, especially pico or nano hydro

(a few kW or less). Installing multiple systems on a river can add up to catchment level impacts,

particularly during droughts or heavy rainfall (like cyclones). Access roads, poles and wires for



distribution all contribute to the impacts of hydro power projects. The influence of the project may

create secondary impacts, through access and influencing land use. For a small hydro projects, the

perspectives from financial , environmental , social, infrastructural are varying from project to

project. The Bankers are only interested for IRR, DSCR of the project and may not have interest

unless until instructed from others. From World Bank funded programs we have seen that the small

issues on Social, livelihood, cultural and flora /fauna are getting importance in the project outcome

aspect. During this stage, it was motivated the author to go for a deep study on comprehensive

social impact study on various clusters ( Kullu, Sirmour, Chamba , Kangra ).

In the present study we prepared a small questionnaire from IREDA in consultation with

World Bank . The questionnaire captures the following aspects:

a)The IPP ( Independent Power Producers ) may take action on various allied issues ( Land use,

Forest/tree cutting to the min. possible, access road , water flow compliance , catchment water

treatment, LADA ( Local Area Development Activity ) , employment opportunity to local people,

fishing ( Trout ) , impact on goat grazing , local schooling , encroachment issue nearby historical

monument / mandir/temple etc)

b) A brief details on local people near site on income level , approach road , market presence ,

hotels/restaurants , telephone booth ,health centre , local grid condition .

c)Transport facility to site and other basic infrastructure which are assessed during pre sanction

stage and post sanction monitoring stage from time to time . Generally every inspection will

capture the social , environment aspect over a period of time ( Implementation phase 30-40

months). During this phase a clear cut development in social mobility , income level upliftment ,

education awareness, market presence as well as social livelihood improvements are observed .

The input from various sources are captured and presented to the World Bank during impact

assessment stage .

d) Scoping phase : During the phase of implementation time , a careful observation was carried

out and a comprehensive data base was prepared to show case the generation output in various



clusters . Some interesting factors have emerged from the study on possible interpretation of

generation from commissioned projects in the nearby area which will give a fair amount of

generation projection which are directly linked with recovery aspect of the Bank / Financial

Institution .

e) During the pre and post installation stage , the human activity has been greatly changed due to

construction activity which are directly linked with human factors which need attention from all

angles . If an IPP is well aware on social isses beforehand , the social impact is clearly visible .

The average income level of the local poor people , unemployed youth , market presence is directly

improve the livable conditions whereas the a close visible plan on project management is going to

reflect a positive aspect on social acceptance . In some of the projects , the local people are not

happy to see the damage of the road without active support from the IPP is observed which makes

a great amount social conflict .

f) A great amount of project management maturity is absolutely required to cover these small

aspects which are interconnected with each other . A balancing mode of action from all project

partners are required in every phase .How to measure SIA variables

The methodology for SIA is based on the site specific information which are subjected to be

verified from various sources for further analysis . Some input variables are mentioned below:

Projects/Policy

setting

Planning

/Policy

Development

Construction

stage/Impleme

ntation

Operation/Maintenanc

e

Decommissioning/

Abandonment

Hazardous

Project site

Perception of

Risk, Health

Safety

Influx of

workers

Transformed policy

initiation

Change in Local

Government

Industry Type,

Location

Formation of

attitude

towards the

project

Change in

communicatio

n/ In front of

Structure

Employment

( Direct & Indirect)

Change in Minority

Group



Forest/ Park Interested and

affective

public

Trust in policy

initiation

Recreation

measurement

Distribution of

power / Authority

Action flow strategy

The most useful tool for understanding and managing the impacts of a particular site is through

the SIA ( Social impact assessment ) parameters through scientific analysis and stake holder’s

involvement . A good SIA helps a company to identify the critical social issues associated with a

project to ensure the positive impacts in optimal level and managing negative impacts to the

minimum possible for mitigation . An effective SIA process can improve local community

understanding of the whole project , increasing the trust between the company and local

community as well as increasing the sustainability of the project.



To take up the above in mind , the following steps are generally taken up as appropriately :

Checklist is focused on :

Aspect Possible impact

1.Contamination of surface water

with dust, construction material, oil ,

grease , hydrolic fluid etc.

Construction permit

Compliance of relevant law

Construction practice at site

Step‐1•Develop public scoping program(public involvement)

Step‐2

•Describe proposed actions and alternatives

•( Identification of alternatives)

Step‐3•Describe relevant human factors and area of influence( Baseline condition )

Step‐4•Identification of probable impact ( Based on scoping)

Step‐5•Investigate probable impact ( Projection of estimated effect)

Step‐6•Recommend changes in proposed actions or alternatives ( Changes in alternatives)

Step‐7•Mitigation Plan

Step‐8

•Develop monitoring program

•( Monitoring)

Step‐9•DEtermine probable response of affective public

Step‐10•Estimate indirect and cumulative impact



2.Emission of pollutants due to O &

M practice

Use of biodegradable compounds, tunnel

cleaning , waste water treatment

3. Eutrophication of waterways

downstream from construction site

Use of best practices

Clearing and excavation

4. Loss of fauna , flora attributable to

construction of hydro facility

Nearness to endangered species , plants

etc

Minimise loss of bio-diversity

5. Creation of barriers to fish

migration

Fish migration effect

6. alteration of aquatic habitats due to

construction of in stream barriers

Change of affected habitats

7. Impact of fauna and flora due to

construction of transmission line

Loss of natural resource, recreational

value

8. loss of aquatic wetland and

terrestrial habitat due to flooding

Loss of livlihood

9.Changes in communities Direct impact of livlihood

10.Detrimental effect on downstream

aquatic ecosystem due to release of

anoxic water /suspended particle

Loss of income for poor families engaged

in this profession, loss of income to allied

sector ( hotel)

11. Change of aquatic life due to

species loss , depletion of water level

Change of aquatic life

12.visual impact of earthworks Loss of pristine beauty of site

13Disruption of site with historic

site/religious significance

Social issue , very sensitive



14. Noise Construction site – blasting etc

15. Threat of human life and loss of

life due to dam failure

Site safety aspect

16. Visual impact due to dam

/diversion works)

Site specific

17.Land use conflict due to

construction lines

Social issue –careful action through site

staff

18.change of water quality due to

sediment effect

Social-livelihood issue

19.Public health risk Social issue

20. In sufficient flow for downstream

users

Social , economic, livelihood issue –

direct impact to local population, income

level,

21.Social consequences of increased

migration to plant site

Law and order problem

Chaotic ambience

Cleanliness issue

Impact on water use , sanitation, drinking

water

22. Accidents during construction Plant safety

Social issue

How to activate the SIA activities at what stage ?

It is the most cost effective to carry out ESIC ( Environment & Social Impact Assessment ) prior

to site development to identify and resolve issues at an early stage , because of the large amount

of capital funding involved in developing or altering a site . Assessment can also be useful during

operation to identify to identify area for improvement and before site disclosure to assess the option

for re-habilitation if any.



Who are the possible stakeholders ( direct/ Indirect) ?

It may includes , are not limited to , the following groups .

1. The project proponent or the Developer

2. Teams of specialists ( Possibly including the Independent Consultant)

3. Relevant Local Public Authorities, Govt Department and Government Agencies

4. External Reviewers ( Like Supervision members from International Funding Institution)

5. Financial Institutions

6. Local Residents and communities, Village Panchayates

7. NGO and Community Interest Groups

8. Other Institutional Bodies such as Regional Development Forums and Resource

Management Organisation .

Now, we will describe the ways and means to quantify the various aspects from the Socio-

economical view point In a sample 5 MW Small hydro project , the estimated project cost comes

around 50 Crore with following break up :

Pre-project Expenditure : 1.50 crore

Land and development cost : 2.50 Crore

Civil Works : 15.00 Crore

Hydro Mechanical Cost : 10.00 Crore

Electro Mechanical Cost : 15 .00 Crore

Power Evacuation Cost : 6.00 Crore

Total Project cost : 50 .00 Crore

Project Implementation time : 3-4 years from Financial Closure date for a typical hilly hydro site

Some of the critical observation noticed during implementation phase :

Lack of access road to the project as most of the project ( diversion site to Power House )

are at remote location which has no road facility .

Lack of transport facility for construction material to be delivered at site. For such a small

project, laying 6-10 KM road is not feasible sometimes , sometimes the ropeway facility

was adopted to facilitate the work .



Land ( Government & Public) acquisition is a difficult process . During layout ( FR/DPR)

it needs a careful approach not to harass local people . If local people are happy to get

employment , support they do not create troubles generally unless it is very serious like

livelihood issue . In Himachal Pradesh , there are many fish farm( Trouts) which has a high

demand for tourist community . During implementation , the mud disposal , blasting , water

logging too much may disturb the fish culture therefore such sensitive issue are very touchy

which may be avoided .

Land acquisition may have some issue of tree cutting .The State Government has a policy

for compensation procure but as a prudent practice , it is to be taken up by all concerned

with a periodic check up and reporting framework so that the mountainous beauty and

serene atmosphere is retained .

Water discharge for down stream cultivation, flora and fauna, various medicinal plantation

besides the forest herb . The IPP and local Government have a cordial relationship to

understand the need of the local people therefore the State Pollution Department may have

a greater role to play a win –win situation . If prior action and supervision is taken up , it

will be easier to implement the project construction activities .

Local Health care support: During construction phase , for safety reason the health care

units are taken up by the developer ( IPP). Sometimes in great need (Delivery, snake bite,

Emergency need) the local villagers need help from the project on humanitarian ground .

Once it is offered, the local people oblige and support the project staff if so needed.

Power Evacuation: For laying the transmission line, sometimes local people hesitate to

offer the land for genuine reason (Electrocution in the farm land), same may be taken up

in such a way to avoid as far as possible.

Compensation aspect: As far as possible, the compensation (land) issue may be settled

through local staff who knows the local people, their need, their language .Through

dialogue it may be settled amicably without use of force from police station or any other

forcible option which may create chaos without any merit.

Motivational aspect: During implementation in some projects, the issues of education to

local poor students , the matter was raised to the developer . After commissioning the space



was donated to the local youth to run the school and training for knitting to the poor

unemployed girls. These small issues was highlighted in the project impact study.

Social Impact Assessment Results:

Based on the sampled data from few projects in Kullu Cluster , some intersecting output is

presented which are not even counted in the Project Financial evaluation purpose by the Financial

Institution as same is accountable if properly done for a dedicated cluster . The private sector

developer has no direct obligation to oversee this factor as is not coming under the purview under

direct jurisdiction. They are concerned on the power output and revenue collection for repayment

therefore it has become the responsibility of the allied partners to keep them under strict

compliance in every year record. Post commissioning impact study is not a regular practice by

many financial institution although the overall health of the project is rest on the joint responsibility

of the IPP and the Financial Institution . Therefore a competitive award scheme may be developed

by the financial institution to award the best performing project on overall evaluation perspectives

which may comprise generation , safety, environment , social impact and livelihood issues. Some

of the impact factors identified below:

Employment aspect :

Manpower Deployment for construction activity :

a) 100 persons for 4 years ( i.e 30000 mandays @ Rs. 300 /day – approx.90 lacs for

construction workers which will be mobilized from local villages, other staff – Say 50

persons for 2 years @500/day .i.e manpower cost -75 Lac , specialized staff for project

team –say for 15 @3000/day basis for 2 years i.e 2.70 Crores . So the total estimate on

manpower cost – 435 lacs which is 8.7 % of the project cost . In general it is vary from 8-

10 percent of the project cost )

b) Indirect benefit to the local people: It is very difficult to quantify from the data

availability . We proposed to have a data on average income level per family before the

initiation of the project and after commissioning the project.. From the data received from

the IPP and inspection , the income level starts from Rs. 4000 pm to 7000 pm in a time

frame of 4 years . It is very interesting to note that during pre project inspection , no nearby

housing /by lane activity was found whereas during commissioning very live atmosphere



on local market, computer /Xerox copy machine, grocery shop, vegetable market , medical

shop, small health care facility are giving the signal of lively life in the remote project area

which is a great project outcome of the small hydro project . (In china the above aspect is

earmarked as social aspect. If investment on project is Rs.100, the cumulative return of the

project is Rs.900 in a time span of 15-20 years .So in our case, it is almost similar. We are

investing in project cost around 50 Crores out of which the local/ manpower cost is only

4.35 Crores whereas the effective return is 9 times of 4.35 Crores which is roughly 38

Crores which improves the social upliftment cause . It also increases the rural life comfort,

education, social income as well as clean power at the door step ( 10 percent free power is

offered to the local grid which improves the grid quality .

Change of Project design (water conduit) in implementation phase:

During implementation phase which suffers from inordinate delay in water conduit, there was a

possible 3.5 km conduit waterway across the mountainous range which could damage huge forest

cover, it was decided by joint consensus to layout steel pipe design which costs 10 percent original

cost . A concurrent engineer was deployed to oversee the modified design and a possible damage

to the huge blasting as well as erosion of forest cover was retained. This project was commissioned

and survived in spite of possible recall option. Various technology innovation and timely action

has saved this tiny project (Chevron case -1.0 MW) from time and cost over situation.

Similar is the case of another project (KKK) which has faced severe bottlenecks on road access

and water conduit problem which was settled in amicable way out through deputing expert ( Ex

retired Hydro Expert) . On successful commissioning of the project, the developer has

commissioned stage-II with 1.0 MW unit without any severe troubles . The local populace have

contributed in the project . The success of these projects have contributed many more in the local

and other area who learnt the art of project management as well as other critical issues like

Environment and social issues .

Clean Energy Generation aspect : Assuming 20 million units per year ( at average 35-40 Percent

PLF ) , the project generates 400 MU in 20 years , out of which 10 percent is free power, 10 percent

T&D loss so effective project output will be 320 MU . The expected revenue is approx. 320 MU

x Rs. 2.5 X 20 years i.e 1600 crores ( which is 32 times of total investment ). If we consider 50



MW kullu cluster at a time ( a combination of 1,2,3 MW ), the project output is approx. 16000

Crores or even more that in considering the overall impact in 20 years time frame which helps to

improve the economic hub of livelihood in various sector domain .

Conclusion :

In small hydro domain particularly in cluster mode approach the Techno Economic impact is

visible but the social impact is more visible over a period of time. The conventional overview of

techno economic outcome is overshadowed by vibrant social transformation process in view of

social input in upgrading the livelihood issues. Now from the study , it reveals that the overall

social impact ( Social Output parameters in terms of monetary return- it is in the range over 18-20

percent per year ) is much more than Financial Return ( say overall return is to the tune of 12 -15

percent range) . Some alarming factors like ecological disaster , reduction of forest cover / apple

orchard , possible damage of local livelihood issues like hatchery may be very serious which may

endanger the tourism status therefore a mixed approach of intermediation is a prudent need of the

hour . The impact assessment from more than 80 samples are under progress and outcome in

various segments (as mentioned in the exhaustive list) shall be shared upon completion. The State

Government must take action not to allot any more projects for few more years (say 10 years) so

that a proper restoration aspect may stabilize by that time. The size and capacity constraints of

Kullu cluster is not going to bear any more projects beyond the limit (At present it is 80 MW) . In

the interest of the pristine beauty of the Kullu , this capacity cap is just sufficient to make a

temporary stop gate for avoiding ecological disaster . Presuming that 40 percent allotment is

successful and the rest is expected to die down due to huge capital cost and allied disadvantages

which are beyond the capacity of micro investors. There must be a filtering technique which may

define the best selection on proximity effect .Too much projects in the close vicinity may damage

the social equilibrium in economic stand point .

References:

1. Asher, Manshi (2008): “Impacts of the Proposed Himalayan Ski Village Project in Kullu, Himachal Pradesh – A Preliminary Fact Finding Report” (Himachal Pradesh: Him Niti and Jan Jagran Evan Vikas Samiti).

2. Baker, J Mark (2005): The Kuhls of Kangra: Community Managed Irrigation in the Western Himalaya (Delhi: Permanent Black).

3. Gaul, Karen K (2001): “On the Move: Shifting Strategies in Environmental Activism in Chamba District of Himachal Pradesh”, Himalaya, 21(2):70-78.



4. Government of Himachal Pradesh (2006): “Hydro Power Policy”, (Shimla). 5. Government of Himachal Pradesh (2012): “Memorandums of Understanding”, Himachal

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