india’s hydro industry has suggested a new set of measures to encourage private participation and growth in the hydro power sector. The measures are related specifically to competitive bidding, environment clearance, tariffs, financing and royalty issues The Chamber of Commerce has suggested that the limit of 100MW for allocation of a project to the private sector should be abolished and that there should not be any limit on capacity if private sector participation is to be encouraged.

Under the current Hydro Power Development Policy 1998, all projects greater than 100MW are allocated through a competitive bidding route which has not worked in the hydro sector.