India is one of the world’s major producers of hydroelectric power, and the sector itself holds immense potential for the future. Under this mode of power utilisation, water that falls from a certain height is used to rotate a turbine which, in turn, is connected to a generator for producing electrical power. India has vast hydro-based potential from which commercial production of electricity is possible. An overwhelming majority of this industry falls under the public sector and private sector participation is limited. The government is keen on supporting hydroelectricity as a form of power generation as it is considered to be a renewable and clean source of energy. Hydroelectric power projects are mainly classified into small and large hydro projects. Usually projects with up to 25 MW power generation capacity are termed as small hydro power (SHP) projects. Although hydro power projects are supposed to be much less costly and operationally efficient than traditional coal-based ones, sometimes there are geological hurdles which delay such projects to a great extent, thus leading to increased investment expenditure. Moreover, such projects can prove to be unreliable, especially during droughts and dry seasons. Hide this