Hydro power as a source of energy generation has acquired importance in recent years as conventional sources of energy are sometimes unable to meet the growing demands of the country’s population. The fact that India is well endowed with a substantial amount of water bodies in the shape of rivers and waterways has worked out to the advantage of the hydro power sector. At the same time, the country is also trying to lessen its dependence on thermal power and other non-renewable sources of energy. However, construction of hydro power projects has certain inherent constraints that made such projects unattractive to the private sector in the recent past. These include resistance from the local population since the course of waterways can be altered as a result of such projects. Moreover, hydro power projects can be unreliable during the dry season and also during prolonged drought situations. But, the scenario seems to have changed now as private operators are being allocated projects on a build-own-operate-transfer (BOOT) basis. Hide this