Hydropower & PSP

The ASSOCHAM National Council on Hydropower & Pumped Storage Projects (PSP) serves as India's premier Industry Policy Forum, bringing together public and private sector developers of large hydropower projects (HEPs) and pumped storage projects (PSPs), original equipment manufacturers (OEMs), technology providers, and other key stakeholders across the hydropower value chain. For over a decade, the Council has played a pivotal role in strengthening India's hydropower ecosystem through policy advocacy, regulatory reforms, and industry–government collaboration.

At a time when several hydropower projects were on the verge of becoming Non-Performing Assets (NPAs) or entering insolvency proceedings under the National Company Law Tribunal (NCLT), ASSOCHAM emerged as the leading industry voice advocating for timely public policy interventions. Through sustained engagement with the Ministry of Power, NITI Aayog, the Central Electricity Authority (CEA), the Cabinet Secretariat, the Ministry of Environment, Forest and Climate Change (MoEFCC), and other Central Government agencies, ASSOCHAM helped transform hydropower from one of India's most neglected infrastructure sectors into a national renewable energy and clean energy priority.

A landmark achievement of these efforts was the Union Cabinet's approval of the National Hydropower Policy (2019), which introduced transformational reforms, including:

• Declaration of Large Hydropower Projects (LHPs) above 25 MW as renewable energy projects.
• Budgetary support for funding the flood moderation component of hydropower projects.
• Budgetary support for enabling infrastructure, including roads and bridges.

The Council's continued advocacy also contributed to:

• Notification of the Hydropower Purchase Obligation (HPO) trajectory in January 2021.
• Amendments to the Tariff Policy to operationalise the HPO framework.
• ASSOCHAM becoming, in 2025, the only industry chamber represented on the CEA Sub-Committees assessing the normative cost of enabling infrastructure components—including roads, bridges, ropeways, and communication infrastructure—to standardise reimbursement mechanisms for hydropower and PSP developers under the Government's enabling infrastructure policy framework.

Today, the Council continues to serve as the industry's foremost policy advocacy platform, facilitating constructive dialogue between government and industry while advancing sustainable hydropower and pumped storage development. Through its continued efforts, the Council supports India's renewable energy ambitions, green growth, Net Zero goals, grid flexibility, energy security, infrastructure development, and long-term sustainable development.