R.K. Vishnoi, Chairman and Managing Director, THDC India Limited (THDCIL), spoke to Indian Infrastructure about the performance of the hydropower segment over the past one year, as well as the key issues and solutions to address them. He also discussed his top priorities and plans for the company. Excerpts…
What is your assessment of the hydropower segment’s performance in the past year or so?
Hydropower continues to be one of the most reliable sources of peak power, owing to its inherent operational flexibility and rapid response capabilities. Though there have been regular capacity additions in the hydro sector during the past few years, the share of hydropower in the Indian power sector has been declining due to the comparatively large capacity additions of thermal and other renewable energy projects, particularly solar and wind. The Indian government has renewed its focus on hydropower, particularly storage-based projects, recognising their critical role in ensuring water security amid changing precipitation patterns. With the coming up of large-capacity renewable energy projects, hydro pumped storage projects (PSPs) are poised to play a vital role in the energy transition by storing the surplus power from variable renewable energy projects and supplying it during peak demand or non-solar hours, ensuring a stable and flexible power supply.
The total exploitable capacity identified for large hydropower projects in the country is 133 GW. Of this, approximately 48 GW is currently in operation, and another 13 GW is under active construction across various states, while 18 GW of hydroelectric projects (HEPs) are under survey and investigation. Over the past year, capacity addition in the hydro sector has not been very significant – only 1 GW of hydroelectric capacity has been added to the grid, comprising 800 MW from the central sector and 200 MW from the state sector.
There has been a growth of about 10 per cent in hydropower generation over the past year, and a significant increase is anticipated during the coming years due to the commissioning of various stalled projects and policy interventions by the Ministry of Power.
As per projections, the total large-hydro capacity is expected to increase from around 48 GW currently to approximately 67 GW by 2031-32. A total of 66 PSPs have been identified across the country, comprising 17 on-river projects and 49 off-river projects. Last year, the Central Electricity Authority (CEA) approved the detailed project reports (DPRs) of six PSPs totalling approximately 7.5 GW in record time.
With strong policy support and investment, India’s hydropower sector is on a revival trajectory and is set to play a critical role in facilitating energy security, climate resilience and renewable energy integration.
What are the steps needed to accelerate the segment’s growth?
To fast-track the growth of India’s hydropower sector, the government has implemented targeted policy reforms to ease procedural delays and improve project viability. Key measures include shortened timelines for DPR approvals, streamlined environmental clearances and fiscal exemptions such as waivers on transmission charges, electricity and water cess. Support has also been extended for enabling infrastructure such as dedicated transmission lines, ropeways and rail sidings. Project allotments have been made more flexible, allowing central PSUs to take up projects through nomination, competitive bidding or even self-identification.
To further strengthen the hydropower sector, additional policy and structural interventions are imperative. The uniform adoption of central guidelines across states is needed to ensure regulatory consistency. Given the inherently long gestation periods and high capital requirements of projects, it is important to streamline the entire clearance process – technical, administrative, forest, wildlife and environmental – at both the central and state levels.
To improve the bankability of hydropower investments, financial institutions should offer long-term, concessional loans in recognition of hydropower’s renewable status. Such support, coupled with extended repayment periods, will lower tariffs and improve project attractiveness for both developers and power purchasers.
What have been THDCIL’s key business and growth highlights in the past one year?
Over the past year, THDCIL has significantly expanded its presence across the clean energy segment by developing a diversified portfolio that includes hydropower, thermal, pumped storage, solar (ground-mounted and floating) and wind energy projects. In alignment with the National Green Hydrogen Mission, the company has launched a pilot project and is exploring commercial-scale opportunities. It is also venturing into electric vehicle charging infrastructure and advancing carbon capture and utilisation (CCU) initiatives, such as a 20 tonne per day CCU plant at the Khurja super thermal power project (STPP).
THDCIL currently manages a portfolio of 4,362 MW, including 2,758 MW operational and 1,604 MW under-construction projects. Recently, THDCIL witnessed the commissioning of two landmark projects:
- Units 1 and 2 of the Tehri PSP, India’s first variable speed PSP, which achieved commercial operation in June 2025 and July 2025, respectively, marking a breakthrough in advanced hydroelectric flexibility.
- Unit 1 of the 2×660 MW Khurja STPP was commissioned on January 26, 2025, reinforcing THDCIL’s entry into high-efficiency thermal generation.
What is the targeted capacity addition by THDCIL in the next two to three years?
THDCIL is poised for substantial capacity addition in the coming years. In the next two to three years, THDCIL plans to add 1,604 MW to its present portfolio of 2,758 MW. In fact, two units of 250 MW each of the Tehri PSP and one unit of 660 MW of the Khurja STPP will be commissioned later this year. With the commissioning of these projects, THDCIL’s installed capacity is projected to reach 4,362 MW by the end of 2026-27.
In line with the national agenda of clean energy transition, THDCIL, through its joint venture company TUSCO Limited, is developing 2,000 MW of ultra mega solar power parks in the state of Uttar Pradesh. These include solar parks having a capacity of 600 MW each in Jhansi and Lalitpur, as well as 800 MW in Chitrakoot. These parks are also targeted to be completed by 2026-27.
What are some of the significant projects currently under execution? How are these progressing?
THDCIL is currently executing some noteworthy projects across the hydropower, pumped storage and solar domains, aligning with its long-term vision of a sustainable and diversified energy portfolio.
THDCIL has implemented the first PSP in the central sector – the Tehri PSP – with an installed capacity of 1,000 MW, featuring India’s first variable speed reversible turbines. Units 1 and 2 of the Tehri PSP (250 MW each) were commissioned this year, while the remaining two units (250 MW each) are expected to be commissioned by year-end.
THDCIL has also diversified into TPPs and is implementing its maiden 1,320 MW Khurja STPP in Khurja, Bulandshahr district, Uttar Pradesh. THDCIL has successfully commissioned Unit 1 (660 MW) of the Khurja STPP, with the commissioning of Unit 2 targeted by the end of this year.
The 444 MW Vishnugad-Pipalkoti HEP, located in Uttarakhand, is progressing steadily and is scheduled for commissioning by March 2027. In the north-eastern region, THDCIL is advancing the 1,200 MW Kalai II HEP in Arunachal Pradesh, taken up through an MoU signed in December 2023. This project is currently in the statutory clearances and land acquisition stages.
What are THDC’s current plans and future road map for PSPs?
With the successful commissioning of India’s first variable speed reversible turbines at the Tehri PSP, THDCIL is poised to contribute significantly to India’s energy transition through a strategic and accelerated focus on PSPs. With the CEA identifying a national PSP potential of over 200 GW, THDCIL is harnessing this opportunity to develop flexible, clean energy infrastructure that supports round-the-clock renewable integration.
THDCIL’s road map includes PSPs with a planned capacity exceeding 11,000 MW across four key states, namely, Maharashtra, Chhattisgarh, Rajasthan and Uttar Pradesh. These developments are progressing through a mix of MoUs, joint ventures and government allocations, demonstrating THDCIL’s collaborative approach with state and central agencies.
What are your biggest priorities for THDC India?
At THDCIL, our core priorities are centred around strategic diversification, technological innovation and nationwide expansion. We are committed to developing a strong and balanced energy portfolio encompassing hydropower, thermal, wind, solar, pumped storage and captive coal mining – positioning us as a fully integrated energy enterprise.
In parallel with our capacity expansion, we are also developing frontier technologies such as green hydrogen production and CCU.
A key internal priority is the creation of a strong institutional knowledge base. This initiative aims to ensure effective knowledge retention and its systematic deployment across upcoming projects, especially as we enter newer domains such as green fuels and emerging energy storage systems.
What is your outlook for the power sector for the next few years, and what is THDC’s role in it?
Driven by rapid urbanisation, industrial growth, digitalisation and increasing per capita consumption, the power demand in India is expected to grow at a CAGR of 6-7 per cent till 2030. With a commitment to achieving 500 GW of renewable energy by 2030, India’s power sector stands on the verge of a transformative era. Hydropower, with its vast untapped potential, is poised to play a pivotal role in enabling the shift to a low-carbon economy.
Recognising this, the Indian government is actively promoting the development of both large- and small-hydro-power projects, with nearly 20 projects currently progressing through various stages.
While coal is expected to remain a transitional fuel source in the near term, India is targeting a significant 74 per cent share of renewable energy in its power generation mix by 2040. This transition is vital to meet the anticipated surge in electricity demand by 2029-30, propelled by economic expansion, urbanisation and industrial growth. To support this shift, the government has rolled out enabling policy frameworks aimed at attracting private investment, fostering innovation and supporting decentralised clean energy solutions.
In addition to the 444 MW Vishnugad-Pipalkoti HEP under implementation in Uttarakhand, THDCIL is developing hydro projects on the Lohit basin in Arunachal Pradesh, alongside PSPs across four states and over 4,000 MW of hydro projects in various other states.
Through this targeted expansion, THDCIL is ensuring that hydropower remains a cornerstone of India’s net zero strategy, contributing meaningfully to the creation of a reliable, sustainable and carbon-neutral energy future.
