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Energy has been universally recognized as one of the most important drivers for economic growth and development. Access to affordable and reliable electricity is critical to a country's growth and prosperity. India has made significant progress towards the augmentation of its power infrastructure. However, capacity augmentation of power generation was not commensurate with the exponentially increasing requirements driven by the rising population, expanding economy and a quest for improved quality of life.
National Electricity Policy, 2005 envisaged an ambitious objective of power to all by 2012 and therefore, capacity addition in the power sector infrastructure has been one of the major thrust areas of the Government. Hydro power, one of the sources, is a renewable, economic, non-polluting and environmentally benign source of energy. Hydro power stations have inherent ability for instantaneous starting, stopping, load variations, etc. and help in improving reliability of power system.
The generation cost is not only low and inflation free but also reduces with time. Therefore, hydro power is considered to be the best choice for meeting the peak demand. The Central Electricity Authority assessed (1987) country's hydro power potential of 84,044 MW at 60 per cent load factor.