The Bihar State Hydroelectric Power Corporation (BHPC) is an undertaking of the Government of Bihar (registered under the Companies Act) which has been working since its very inception in 1982 conforming to its corporate philosophy comprising the following:-

ü      to initiate steps for development of hydro power tapping all possible potential in the State of Bihar  as also in Jharkhand;

ü      to carry out all these activities with Dedication, Devotion and Discipline;

ü      to conduct all operations in harmony with the environment;

ü      to strive continuously for upgrading skills of manpower and acquisition of latest technology ; and

ü      keeping the interest of the people and national priorities in view work out strategies to meet challenges that the power sector may face in coming years.

            The Bihar State Hydroelectric Power Corporation (BHPC) after being in existence for two decades has reached a point from where it can make a two pronged move. One of these will lead to identification, development and implementation of big hydel units while the other will remain directed at installing a series of small hydel plants in the State's canal system.

            In the wake of the re-organization of the State of Bihar in November, 2000, the  BHPC has to function as a company owned jointly be governments of Bihar and Jharkhand as provided in the Notification No. 12025/20/2004-SR of 13.09.2004 issued by the Ministry of Home Affairs, Government of India,  which reads as follows:-

"And whereas, Jharkhand State has not set up its own Hydro Electric Power Corporation and the aforesaid Corporation continues to operate in both the States of Bihar and Jharkhand.

And whereas, in the meeting held on 3^rd September 2004 at Ranchi, the officers representing the Governments of Bihar and Jharkhand arrived at the following agreement for apportionment of assets and liabilities in respect of Bihar State Hydro Electric Power Corporation.

"The apportionment of shares would be on the basis of assets falling in the two States."

Now therefore, in exercise of the powers conferred upon it under  Section 65 (1) & (2) of the Bihar Reorganization Act, 2000 and in accordance with the mutual agreement as above, the Central Government hereby directs that the shares of Bihar State Hydro Electric Power Corporation will be divided between the Governments of States of Bihar and Jharkhand on the basis of assets falling in the respective areas of the two States. The representation of the two States in the Board of Directors of the Corporation will also be in the same ratio.”

            The basis  for the BHPC's plans over the 11^th Plan period (2007-2012) has to be grounded on the accomplishments over the 10^th Plan period and the envisioned  short-term and long-term goals over the 11^th plan period.

Post bifurcation of Bihar, the power availability scenario in the state has worsened, as most operational power generating plants fell within the territory of Jharkhand. Bihar’s power system has a peak of about 1,500 MW under the currently constrained demand scenario, where electricity covers barely 50% of villages and 6% of households. Against this peak demand, the availability is only about 950 MW, leading to wide-scale rationing of power to all categories of consumers.

            The annual per capita consumption in Bihar is currently at 75 units, against a national average of 603 units in Financial Year 2005. The National Electricity Policy aims to achieve an annual average per capita consumption of 1,000 units by 2012. This growth is predicated on increasing generation availability to remove peak electricity demand and energy shortfalls, as well as implementation of the noteworthy Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), which seeks to electrify all villages in India by 2009 under Central Government provision of 90% to 100% grant funds for creation of rural electrification backbone.

            Bihar shall continue to be a large beneficiary under the RGGVY scheme, which will create substantial additional demand on the system, as new villages and households are provided access to electricity. This is in addition to the expansion in industrial consumption of electricity which is expected in wake of the attractive environment created by promulgation of the Bihar Single Window Clearance Act, 2006 and the Bihar Infrastructure Development Enabling Act, 2006 allied with the State Government’s new Industrial Incentive Policy.

            Against this backdrop, a target per capita consumption for Bihar equal to the current national average (of about 650 units) by 2012 is realistic and achievable under the growth factors discussed above. This per capita consumption translates to a staggering 10,500 MW of generation requirement for Bihar.

            Rapid augmentation of generation capacity is an overwhelming priority for the State Government and a crucial factor in achieving the socio-economic growth targets that the government has set forth to achieve by 2012.   

Achieving minimal levels of self-sufficiency in generation capacity is necessary in the context of this significant growth requirement. Hydro generation as a clean, renewable and long-term source of energy with peaking capability has a valuable role in this generation addition strategy for Bihar and can significantly supplement the large coal-based capacity addition targets for the state. Once established, hydropower plants have long and productive lives in excess of 40 years, and in the long-run have substantively cheaper operating costs than coal-based or natural gas based plants.

            Bihar has been making rapid progress in harnessing its small hydro and large hydro potential. Despite bifurcation of state, and transfer of potentially attractive small hydro locations on geographic boundaries, BHPC has  expanded its generation capacity from 18.3 MW in 2000 to 47.1 MW  till the end of the 10^th Plan period.. Despite constrained fiscal scenario in the State, BHPC has made progress in identifying new capacities. At present 15 projects are under construction, with the financial assistance from NABARD, which will add 14.1 MW to the State's generating capacity. As many as 46 sites have been identified to posses potential for hydropower which when completed will add 140.80 MW additional capacities in the small hydro sector.

  In Bihar, 47.1 MW of small hydro power potential has  already been established. The following table lists the seven projects which are currently supplying power to the state grid.

In operation

Under Construction :

Identified  /Future Projects

The above list includes 17 identified sites in the Kosi Basin also where run-of-the-river hydro power projects could be set up on the Kosi river and its subsidiary streams. These sites appear to have a potential of 97 MW besides Dagmara HEP  which has a potential of 126 MW.

Setting up of hydropower projects at these identified sites will be in conformity with strategies at the national level. These are environmentally sustainable and have linkages with poverty reduction plans at the State and the national level.

            BHPC has also identified 3546 MW of large hydro power generation potential. The identified projects are Dagmara (Kosi), Indrapuri and Kohira Dam, besides 4 pumped storage projects, in Kaimur district  Pre-feasibility for PSS in Kaimur have been established by the Bihar State Hydro Power Corporation (BSHPC).

The Dagmara HEP, besides being commercially attractive, is to be located in a relatively under-developed area of Bihar and a project of this nature would contribute significantly to the socio-economic development of the area.

The Asian Development Bank has indicated willingness to extend financial assistance as per their norms for this project for which needful  action has already been initiated. As per the advise of ADB, tenders for the preparation of detailed project report (DPR) have been invited  and offers received are under examination.

Big Hydro Projects at a glance:

                     Indrapuri Hydroelectric Project (450 MW) :

This project is a component of Indrapuri Reservoir Multipurpose Project to be implemented by WRD, Bihar. Indrapuri Reservoir Multipurpose Project is the outcome of  Bansagar Agreement of 1973. Buts its implementation could not be possible due to unavoidable reasons including that of the fixation of FRL which may affect Obra Hydroelectric Project of Uttar Pradesh. WRD, Bihar has got the rechecked the Obra Dam Tail Race Level with GTS contour survey of Indrapuri Reservoir Project through Survey of India and  found that Obra HEP is not going to be affected by the FRL selected by Bihar. Now it is hoped that work will start soon.

            The estimated cost of the project  is as given under :

            Irrigation Component              Rs. 533.36 CR.

            Power Components                Rs. 577.78 Cr.                       

            Total                                       Rs. 1111.14 Cr. (At 1996 Price level)

                     Pumped Storage Schemes :

v                  Sinafdar PSS (345 MW) is located on Sura river (right fork) in the Kaimur district of Bihar. The project envisages  installation of 3 units of 115 MW operating under a net design head of 120 m. The project would generate an annual energy of 756 MU with annual energy required from grid network for pumping operation as 1133 MU.

The Union Ministry of Power has proposed execution of the Sinfdar Project in Central Sector through the National Hydroelectric Power Corporation. The State Government has commented to proposal.

v                  Panchgotia PSS (225 MW) is located on Karsotha Nallah (tributary of Durgawati river) in Kaimur district of Bihar. The Project envisages installation of 3 units of 75 MW operating under a net  design  head of 110 m. The project would be able to generate 493 MU with an annual energy required from grid network for pumping operation as 739 MU.

v                  Telharkund PSS (400 MW) is located on Sura river in Kaimur district of Bihar . The project with 4 units of 100 MW operating under net design head of 112.5 m would generate an annual energy of 876 MU. The corresponding energy required for pumping has been estimated as 1314 MU.

v                  Hathiadah-Durgawati PSS (1600 MW) is located on Hathiadah river and Durgawati river in Kaimur district of Bihar. The project envisages installation of 4 units of 200 MW each in two Power Houses ( one on right bank of Hathiadah and other on right bank of Durgawati) operating under a Net design head of 175.8 m. The project would be able to generate 3504 MU and annual energy required from grid network for pumping operation would be 5256 MU.

            Further progress on both small hydro and large hydro projects has however been affected by the constrained state finances, which limit financing avenues for these projects.

            The two-pronged strategy devised by the Bihar State Hydroelectric Power Corporation (BHPC) which incorporates all activities for additional capacity creation in the hydro power sector picked up momentum during the Tenth Plan period. Continuing with harnessing potential available through SHPs on canal systems, the BHPC was able to take identifiable steps for setting up of big hydro power projects. These steps included identification of four sites for pumped storage schemes in the Kaimur district of Bihar. These are:-

            Out of these Sinafdar with a capacity of 345 MW is to be implemented by a Government of India organisation, the National Hydroelectric Power Corporation (NHPC) as per decision of the Ministry of Power and agreed to by the Government of Bihar.

            During this period, steps were initiated for setting up of Dagmara HE project with an estimated potential of 126 MW in the Kosi basin.

            A proposal was mooted, during this period to survey river basins of north Bihar for identifying sites with hydro power potential. It is hoped that this would be possible during the 11^th Plan period as the proposal is being pursued with the Asian Development Bank.

            Simultaneously the BHPC's attention remained focused on implementation of small hydel projects on the canal systems. Currently 15 projects, which are part of this capacity augmentation endeavour are under construction, with financial assistance from NABARD. As many as 46 sites which were identified to possess hydropower potential, when completed, shall add 140.80 MW additional capacity to the small hydro sector.

During the Tenth Plan period (2002-2007), the period after Bihar was bifurcated to create a separate State of Jharkhand, significant capacity addition through SHPs was achieved. As has been shown in the chart above installed capacity of hydro plants was increased from 25 MW at the beginning of the Tenth Plan i.e. April' 2002 to 47 MW at the end of  Tenth Plan i.e. by the 31^st March  2007.

            The generation performance of its small hydro plants in the State has been impressive during the Tenth Plan period. These plants have constantly generated energy between 80 to 90%.

Environment consciousness is one of our major thrust areas and the same is reflected through our Environment Policy. Some of the major initiatives undertaken by BHPC to preserve the environment are:

Ø      Environmental considerations internalized during planning of project.

Ø      Obtaining site, environment & forest clearance as per statutory requirements.

Ø      Utilisation of minimum forest area. Conducting Environment impact Assessment (EIA) study and firming up of Environment Management Plans (EMP) to properly address the environmental issues.

Ø      Close monitoring to ensure effective implementation of EMPs.

Ø      Post construction EIA to evaluate pre and pro construction scenario to ascertain efficacy of environment Management Plan undertaken at projects.

            In this scenario, the BHPC is determined to play a facilitator role to ease clearance and administrative procedures. Efforts are being made to insulate developers from the problems of land acquisitions, rehabilitation and resettlement. Above all, to assist achieving the target of Government of India to  provide  power to all by 2012 the prime focus is on improving the bankability  of buyers to provide comfort and encouragement to promoters, lenders, equipment suppliers and consumers. Even otherwise, with volatile oil prices, dwindling fuel reserves and increasing environmental implications of fossil fuel combustion, there is not much of a choice.

For exploration of new projects, it is necessary to get detailed survey and investigation done for all probable sites. It is also necessary to get the detailed project reports prepared for such projects which, after survey and investigation, appear viable. For survey and investigation and for preparation of detailed project report, therefore, sufficient funds have been provided in the 10^th Plan outlay. Similar allocations will have to be made in the 11^th Plan period to undertake viable projects. For looking at the viability of the projects, one should also take into consideration the grid availability for proper evacuation of the power generated and also keeping in mind the local excess demand in case long-distance evacuation of power is not possible immediately.  

The survey and investigation of six probable sites on the Gandak Canal System in Gopalganj District is in progress. It may be necessary to conduct survey and investigation of districts of Jamui, Munger and Bhagalpur which have potential for small hydro power projects on the canal system as well as for run-of-the river projects. Provision for this has been made in the 11^th Plan outlay.

Rural Electrification

Access to electricity is vital for bringing about social and economic development in rural Bihar. With less than 10% of rural households with access to electricity, there is emerging opportunity for BHPC to venture into decentralised distributed generation around Small Hydro Power and rural power distribution along the existing small hydro generating stations. BHPC has already initiated steps in this direction.

Employment Generation :

 Several of hydro projects currently under consideration are to be located in areas, which are relatively less developed and would benefit directly from developmental initiatives associated with implementation of hydro power projects. Another vital opportunity exists in terms of linking small hydro power development with development of rural industries.

Private sector participation:

            The role of the private sector is crucial in the long-run as the significant investment requirements of the state are not possible to be addressed alone by the public sector undertakings and the government. A key area of opportunity in the sector rests in creating conducive policy and regulatory environment for private sector participation.

Disaster Management:

            Some of the dam-based multi-purpose projects also have the potential of addressing water management issues in Bihar, where wide disparities are evident in the form of existing flood and drought prone areas within the state.

             Many parts of Bihar are blessed with abundant riparian resources with the Ganges and its tributaries flowing across the length of the state. The state possesses significant hydro power potential, which can be suitably harnessed. BHPC with the active support of the State Government is taking key steps in this direction.

            The BHPC also propose to take up survey and investigation of basins of other rivers of north Bihar like Bagmati which originate from Nepal.

When a state faces an acute power shortage as Bihar does, one must focus on quick remedies like Renovation and Modernization (R&M) to quickly help some added capacity to the system. BHPC, while making all out efforts for capacity addition in generation through new projects, is also always conscious to the fact that R&M of existing units  has to be ongoing process to increase efficiency, operate at designated capacity and ensure a sustained supply of electricity to the grid. BHPC’s efforts in this direction cover all its generating units viz. Barun, Dehri, Valmikinagar and Kosi Hydro Power Station, Kataiya.

      Hydro power units at Barun (2x1.65MW) in Aurangabad, Dehri (4x1.65 MW) in Rohtas and Valmikinagar (3x5 MW) in West Champaran were commissioned at a time when BHPC was facing a serious resource constraint. The funds constaraint was so high that a sum of Rs. 7 crores had to be taken as loan from the Power Finance Corporation at a prohibitively high interest rate of 16.75% per annum. These projects were put in operation without construction of escape channel as envisaged in DPRs.

            For the 11^th  Plan period both short term and long term objectives have been set for hydro power development.

A)         SHORT TERM PLAN

The short term objective includes completion of projects initiated during the Tenth Plan period and starting preparation of DPRs both for big hydel projects and small hydel projects for which sites have been identified.

Short term plans aim at the preparation of DPRs for Sinafdar and Dagmara for which preliminaries are almost complete. The short term plan will also include :-

i)                Renovation and modernisation of Kosi hydel power plant, Kataiya

ii)                        System improvement  by providing additional features like Escape Channel both at Dehri and Valmikinagar  and Tilting Gate at fall gate of Dehri.

iii)                      Completion of projects under execution.

iv)                      Starting construction of new generating stations at Dhoba, Katanya, Mathauli, Barabal, Dharampur and Laxmipur.

                The figure below summarises the segregation of short term requirements for BHPC.

(B)       LONG Term Plan

            Many parts of Bihar are endowed with abundant riparian resources with the Ganges and its tributaries flowing across the width of the State. The state possesses significant hydro power potential, which can be suitably harnessed. BHPC with the active support of the State Government is taking key steps in this direction.

            The long term plan will include implementation of Sinafdar and Dagmara for which DPRs are expected to be ready by the end of first year of 11^th Plan and initiation of steps for implementation of SHPs on identified sites.

The BHPC is expected to get budgetary support from Government of Bihar as well as Government of India to some extent.

The balance would be met by approaching the domestic as well as international market for long terms loans. Loans from International Market are proposed to be availed through  COFACE, France through CEA route to be exclusively utilized. BHPC has already availed loans from PFC and NABARD.

While looking at the proposals for capacity addition during the 11^th Plan period it would also be relevant to take a look at the availability of funds for hydel power development for the State since the 8^th Plan period. The Outlay for the 11^th & 12^th Fiver year plans and the capacity addition from these projects apart from SHPs under execution or an outline have been prefaced keeping in view a possible addition of 3700 MW at a cost of Rs. 15,000 crores between 1.4.2007 to 31.3.2017 i.e. during the 11^th and12^th Plan period as shown in Annexure- I