Investment conditions in the hydropower sector in Himachal Pradesh, India
GIZ International Services is interested in gaining deeper insight into investment options in the hydropower sector in India, namely in Himachal Pradesh. In order to assess if the hydropower sector represents an interesting business segment, GIZ/IS required in-depth information on risks, barriers, opportunities, general political and legal frame conditions.
Finally two concrete fictive examples were analysed more in detail. A scenario analysis for investment and operation costs for these two case studies (including CDM validation) helped to illustrate specific risks and opportunities. Whether BOT or other models should be considered as interesting options required a preliminary assessment of the various investment options. Developing a hydropower project includes considerations on planning, implementation and operation but also on the management of the whole project development process and the coordination of participating stakeholders. The study included an analysis of policies, regulatory framework (national and state level), tax liabilities, incentives and subsidies, allocation of projects, rules, requirements and duties for project developers, general market assessment, options for financing and operation models and a barrier and risk assessment.
The following services were provided: