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<p>In past years Hydro Sector has seen a latent development, this sector need boost and revival through sustainable regulatory and policy measures. The growth in sector is relatively low as compared to other renewable energy sources. Hydro Power Generation plays a crucial role in balancing seasonal load curves of our regional grids which matches with the pattern of hydro power generation. During summer/monsoon season when the generation at hydro power plants is high, the load factor of the system is high due to heavy agricultural load. During winter, the thermal stations operating at base load and hydro stations working as peak load stations will take care of weather beating loads. Thus the operational needs of hydro &amp; thermal stations are complimentary and the balanced mix helps in optimal utilization of the capacity.&nbsp;</p> <p>Development of hydro power projects is fraught with a number of uncertainties. Broadly, the problems faced by developers can be grouped into those related to the project location, to its geology, and to issues of resettlement and rehabilitation. Yet another major issues faced by developers are Inadequate evacuation facilities for power generated from projects and imposition of high wheeling &amp; Transmission charges &amp; losses for Inter-State transmission of power. Such imposition of pancaked wheeling and transmission charges in many instances makes project unfeasible and jeopardises project sustainability when compared to other wind &amp; solar projects. The project developers usually experience financial stress and faces difficulty to honour debt obligations of investors and shareholders.&nbsp;</p> <p>In order to further encourage development of Small Hydro Projects and make projects sustainable, inter-state transmission charges and losses to be waived off for Small Hydro Projects, which has been kept unnoticed in the past.</p>