The Tehri Hydroelectric Power Project: Challenges and Analysis

Tehri Hydroelectric Power project is a multipurpose dam on Bhagirathi River in Uttarakhand, India. The project has a capacity of 2400 MW and is being developed in three phases. Challenges faced during construction include rehabilitation and resettlement, environmental impact, and seismic stability.

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The Tehri Hydroelectric Power Project
Academic essay on Mega project of India
Prepared by: Vanya
Student ID: S2225876
Sub: Construction Economics and Procurement
Glasgow Caledonian University

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TABLE OF CONTENTS
Contents
1. Introduction ......................................................................................... 3
2. History of the project ........................................................................... 4
3. Technical details ................................................................................. 5
4. Main challenges faced during the construction of project .................... 6
5. Analysis of the project based on challenges ....................................... 8
6. Other issues ...................................................................................... 11
7. Conclusion ........................................................................................ 11
8. References: ...................................................................................... 12
*Total Word count: 2948 words excluding photographs, tables and referencing.

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1. Introduction:
The Tehri Hydroelectric Power
project in the state of Uttarakhand is one of
the mega projects in India. It is a multi-
purpose rock and earth-fill embankment
dam on the Bhagirathi River, one of the
tributaries of the Ganges, near Tehri in
Uttarakhand, India. The dam's height is
260.5 meters, which places it third among
earth-filled dams and tenth in the world. The
project is currently under construction, and the total project cost till now is around INR
83.92 billion. The project was initially started by the Government of India in 1949, but
later, in 1988, the development work was transferred to THDCIL (Tehri Hydro
Development Corporation India Limited). The maximum planned capacity of the dam
is 2400 MW, and the project is being developed in three phases, i.e., Tehri Dam &
Hydro Power Plant with 1,000 MW capacity in Phase-I, Koteshwar Power Plant with
400 MW capacity in Phase II, and Tehri Pump Storage Plant with 1,000 MW capacity
in Phase III. The commissioning of Phase I and Phase II was completed in 2005 and
2011, respectively, and Phase III is expected to be commissioned by December 2022.
The Tehri Dam maintains a reservoir for agriculture, flood control, urban water
supply, and the generation of 1,000 megawatts (1,300,000 HP) of hydroelectricity
(Sandipa, 2015). It provides affordable electricity, to nine northern regions of India:
Uttarakhand, Uttar Pradesh, Haryana, Himachal Pradesh, Delhi, Punjab, and the
Union Territory of Jammu and Kashmir, Chandigarh, and Rajasthan. Further, around
300 cusecs (162 million gallons) of drinking water is supplied to Delhi, and 200 cusecs
(108 million gallons) of drinking water is supplied to the villages and towns of Uttar
Pradesh, along with irrigation facilities for an additional 2.7 lac hectares and
stabilisation of the existing irrigation system for a 6.04 lac hectare area (THDCIL,
2022).

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Due to its large scale, the project encountered various issues during the
construction phase, such as rehabilitation and resettlement (R&R) of the local
population, environmental impact, and the seismic stability of the dam. It took more
than three decades to partially complete the project. These issues had an impact on
the local economy, project completion and construction costs, and the procurement
procedure. This essay will provide insight on the project history and technical details,
followed by analyses on how the major issues of the project have further impacted the
project time and cost, supply chain management, procurement, and the local economy
during construction.
2. History of the project
The construction of the project was conceived by the government of India in
1949, i.e., the post-independence era of India. Large dam construction, particularly
multi-purpose river valley initiatives that generated both irrigation and power while also
providing flood control due to the Indian monsoon climate, was an important
component of the promoting economic growth development model during this period
(Khagram, 1999). A reconnaissance survey of the Bhagirathi River was carried out in
1961–1962 to select a suitable site for a storage dam. The Tehri site was found to be
techno-economically feasible for the construction of a high earth and rock-fill dam. The
detailed project report was prepared and submitted to the government of India in 1969
by the UP irrigation department. The project was technically cleared by the Central
Water and Power Commission and finally approved by the Planning Commission in
1972 (Sandipa, 2015). Based on the preliminary survey, it was planned to design the
project with a capacity of only 600 MW.
In 1976, the administrative clearance was given by the UP government. In
February 1980, an Environmental Appraisal Committee appointed by the Union
government refused the environmental clearance of the dam. However, the work on
the dam continued, but due to a paucity of funds, the construction work couldn’t pick
up the pace. In November 1986, the dam project was agreed to be constructed by the
USSR (Union of Soviet Socialist Republics) on a turnkey basis with its technical and
financial assistance (Hazarika, 1992). Further, due to political change in the USSR,
Russia withdrew its offer, and the government of India took the initiative to resume the
project with its own financial and technical resources (Adhikari, 2010). As the project

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was intended to offer more irrigation in Uttar Pradesh (UP), the Irrigation Department
of Uttar Pradesh (UP) took the lead role in implementing it in the new context.
Furthermore, in 1988, the Tehri Hydro Development Corporation India limited
(THDCIL) was formed as a joint venture of the Central Government of India and the
Government of Uttar Pradesh, with the central government owning 75% of the equity
and the state government owning 25%, while the irrigation component was agreed to
be funded entirely by the state government of Uttar Pradesh. In 1990, the project was
reconsidered, and without increasing the height of the dam as earlier proposed, the
design changed to its current multi-purpose.
The construction of Phase I and Phase II was successfully done by THDCIL in
2006 and 2011. After the strategic sale, the equity in TDHCIL is shared between NTPC
Limited and the Government of Uttar Pradesh, India; the project is currently owned by
NTPC with a stake of 74.49% (THDCIL, 2022).
3. Technical details
The technical details of the project in phases are as follows:
1) Phase I-Tehri Dam & Hydro Power Plant (1000 MW): A rock fill dam 260.5
metres high, downstream of old Tehri town with a surface area of 42 sq. km at
full reservoir level of 830m. It includes spillway structures to pass over excess
floods, power tunnels, and an underground power house underground
powerhouse with four units of Francis turbines of 250 MW installed capacity
each (4 x 250 MW). The project work commissioned in 2006.

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2) Phase II-Koteshwar Hydro Electric Project (HEP) (400 MW): It is at about 22
km downstream with the height of 97.5 m gravity dam, a spillways structure with
four units of 100 MW (4X100 MW) turbines at the toe of the dam to generate
400MW of electricity. The reservoir in Koteshwar HEP acts as a balancing
reservoir to allowing Tehri HPP and Tehri PSP to be used as peaking stations.
The spillways with four bays are designed to discharge maximum flood water
of 13,240 cumecs at the body of the concrete dam. This phase was
commissioned 2011.
3) Phase III-Tehri Pumped Storage Plant (PSP) (1000 MW): It is an under
construction project which based on the concept of Re-cycling of water between
upper reservoir and lower reservoir. The main concept is to lift the water from,
lower Koteshwar Dam to upper Tehri Dam mostly during off peak hours to
generate additional 1000 MW of power during peak hours.
4. Main challenges faced during the construction of project
 Resettlement and
Rehabilitation (R&R) of Locals:
The 260.5-meter-high Tehri Dam
and the 103-meter-high
Koteshwar Dam (Tehri Dam)
formed two lakes during the
development, which spread over
42 square kilometres and 2.65 square kilometres, respectively, at maximum full
reservoir levels. As a result, over 24 villages were submerged in these lakes,
while 88 more were impacted. Furthermore, 13 more villages were affected by
the acquisition of land for the project works and the worker’s colony. Due to the
resettlement and rehabilitation, the local population started protesting against
the dam construction, followed by the filing of a petition against the resettlement
in 1992. However, the petition was dismissed by the court in September 2003.
The government of India executed a resettlement and rehabilitation
(R&R) plan for the affected people in the year 1976. The rehabilitation plan was
categorise into urban and rural rehabilitation, the families under the rural
rehabilitation were categorized as ‘partially affected whose less than 50% land
acquired during construction’ and ‘fully affected with 50% or more land acquired

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during construction’. In case of the urban rehabilitation, the families living in
Tehri town now known as ‘old Tehri’ were treated as fully affected families and
resettled in New Tehri town. The Tehri town (presently know as Old Tehri) was
established in 1803 and after rehabilitation it was resettled in New Tehri situated
on the right bank of the Tehri reservoir. The rehabilitation project and
commenced by Uttara Pradesh (U.P) government till 1990, further it was taken
over by THDCIL. The policies, packages and benefits were enhanced over time
where necessary. The R&R completed in 2011 and the total expenditure
occurred is INR 1.4 billion (THDCIL, 2022)
 Seismic Stability of Dam: The Tehri Dam is a rock and earth-fill embankment
dam, and its design was finalised in 1960, when the understanding of the
seismic hazards and seismic zone areas was less advanced in India than today.
The dam was originally designed by the Uttar Pradesh Irrigation Department
(UPID), which was later developed by the Design Organization of Tehri Hydro
Development Corporation Ltd. (THDCIL). The seismic studies and analysis on
the stability of the dam were carried out independently by two agencies, firstly
with the help of THDC design consultants, the Department of Earthquake
Engineering at the University of Roorkee, India, and secondly by the experts
from the Hydro Project Institute (HPI), Moscow.
The analysis showed that the designed rock-fill dam is safer due to its
high flexibility and better seismic acceleration damping characteristics, and the
dam can withstand an earthquake of a magnitude of 8.0 on the Richter scale.
However, doubts about the seismic stability of the dam started to arise among
the local public and seismologists in 1986 and were periodically reiterated over
the years. In 1991, when the dam experienced a magnitude 6.5 earthquake
with an epicentre 5 kilometres from the dam's location, attention was once again
focused on the dam's stability, and criticism of the dam heated up at the local
level in the media. The agitation and protests against the dam's construction
had resulted in additional delays in the construction work.
 Environmental impacts and protest: By the definition of the dam, we all know
it is a manmade structured wall build across a river to hold back running water

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and forming an artificial lake. This causes the change in the ecosystem of the
natural habitat. The construction of the Tehri Hydroelectric power plant had
made significant impact on the biodiversity i.e. flora and fauna of the area. The
movement of migrating fish species obstructed during breeding season.
Further, in 1970 to 2000 the dam construction also faced ‘Chipko movement’ a
nonviolent social and ecological movement by rural villagers to protect the
forest and natural area.
5. Analysis of the project based on challenges
1- Effect on project cost and time: The project experienced numerous delays
as a result of the agitation among local and uncertainty around a variety of
concerns, including dam safety, environmental issues, and R&R issues.
According to studies, it was concluded that the main reason for the time and
cost escalation of the project was mainly due to Rehabilitation and resettlement
(R&R) process and getting approval from the government authority (Dubey,
THDCIL). The rise in the construction cost was due to delay and inflation during
over the ten years. Due to agitation in local people the R & R packages had
pushed further, that caused the increase in the project cost. The details of the
escalation in the project cost and time are as follows (Dubey, THDCIL):
Time and Cost Escalation data:
(Data based on TDHCIL report prepared by Mr. AK Dubey )
S.No. Description
Estimated
revised time of
completion of
project
Cumulative
revised cost of
project (in INR
Billions)
1
Year 1993- Total cost of
construction of Phase I, II
and III
1999 ₹ 29.64
2
Year 2003 - Total cost of
construction of Phase I, II
and III
2005 ₹ 66.21
3 Year 2005, commissioning of
Phase I started 2006 ₹ 68.97
4 Year 2008, Phase II and
Phase III construction started 2022 ₹ 83.92

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R&R cost escalation:
(Data based on TDHCIL report prepared by Mr. AK Dubey )
S. No. Description
Cumulative
amount ( in INR
Billions)
1 R&R Package in 1993 ₹ 4.12
2 R&R Package in 2003 ₹ 9.83
3 R&R Package in 2005 ₹ 9.89
4 R&R Package in 2011 ₹ 14.80
Hence, in view of the above, it can be concluded that if the issue of the
R&R would have been solved in time, then the project cost and time would not
have been increased this much.
2- Procurement issues for the project: The project was typically delayed
because of rehabilitation and other concerns. Due to the delays, civil works
under execution were severely affected, leading to unprecedented cost
escalation in steel and other input materials. Due to this, contractors working
with THDCIL had severe cash flow problems and were not able to procure input
materials from the market (Dubey, THDCIL). These concerns have also
affected the supply and chain management of the project.
3- The degree that the project affected the local economy. Dam projects
generate a vast array of economic impacts, both in the region where they are
located and at inter-regional, national, and even global levels (Cecetti, etc.).
These impacts can be positive or negative socially as well as on the economic
growth of the local area. The following are a few positive and negative impacts
on the local economy from the project:
(a) Positive economic impact of Tehri Dam: Tehri Dam has been making its own
unique contribution to the expansion of the national and regional (Uttarakhand)
economies, which are as follows:
(i) The electricity generated by the Tehri hydropower plant (HPP) (1000 MW) and
the Koteshwar hydroelectric plant (HEP) (400 MW) is distributed to nine
Northern Region beneficiaries in India: Uttarakhand, Uttar Pradesh, Haryana,

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Himachal Pradesh, Delhi, Punjab, and the Union Territories of Jammu and
Kashmir, Chandigarh, and Rajasthan.
(ii) Since the first year of Tehri HPP's commercial operation, i.e., 2006–2007, it has
been generating profits and distributing a portion of its earnings as dividends to
its shareholders, the governments of India and Uttar Pradesh.
(iii) 12% of the electricity produced by the Tehri HPP (1000 MW) and Koteshwar
HEP (400 MW) is given to Uttarakhand free of charge.
(iv) The construction of the dam has resulted in the development of the local area's
road network, allowing for better connectivity, which has helped in the
development of local tourism, which has also helped local people get
employment.
(b) Negative Impact: Large dam projects that benefit the nation may not
necessarily benefit the local economy (Aleseyed, Rephann, and Isserman
(1998)).Before the construction of the Tehri Dam, the Old Tehri Town's
establishment as a business economy had been supported by its excellent
central location, but the construction of the dam project upended the existing
economy's structure and caused the closure of a key regional business district.
The new Tehri town developed after the resettlement during dam construction
was a service-based economy, which didn’t help the local people's businesses
much to re-establish in the new town (Reddy, 2016).
4- The degree that the project affected by local economy. During construction,
the rehabilitation and other challenges caused the project to start later than
expected. Due to delays, the price of steel and other input materials in the local
market increased by an amount never before seen, which had a significant
negative impact on the ongoing civil works (Arora, 2020). Because of this, the
contractors experienced serious cash flow issues and were unable to obtain
input materials (Reddy, 2016). The payment, salary, and wages were not paid
on time, and various projects were also delayed due to local environmental
protests, etc.
5- The degree to which technological innovation has impacted on the
project. During the construction of the Tehri complex, technological innovation
is being encouraged and adopted from time to time by the THDCIL to improve
the project's efficiency and productivity. The real-time flood forecasting system
is one of the technical innovations that helps ensure the safety of the dam by

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giving data on the inflow into the reservoir from the catchment during the flood.
Through the use of GPRS/GPS technology, data is being transmitted to an
earth station located at the top of the dam. The modelling centres at IIT Roorkee
and the Design Department at THDCIL in Rishikesh, India, have website
access to this data. Forecasts are released and distributed to administrative
and engineering authorities after processing and modelling. As per the THDCIL
Hydrotech report, India is the first country to implement this kind of system.
6. Other issues
Sustainability: According to Abdullateef and Ifabiyi (2012), the overall sustainability
of the project rests on the excellent relationship between the three dimensions of
sustainability, namely, social, economic, and environmental. There is no denying that
megaprojects like the Tehri dam contribute significantly to the state's economic
development by providing benefits such as job creation, 12% free power for the state
of Uttarakhand, water facilities, flood protection, new modern facilities for the town of
New Tehri, and tourism and agriculture facilities. However, despite its benefits, the
impacts of Tehri Dam on society and the environment are extensive and have received
considerable attention due to factors such as resettlement, seismic zone effect,
ineffable impact on the ecosystem upstream and downstream, etc.
Corruption: Concerns regarding the high rate of corruption in the rehabilitation
process were raised in the Hanumantha Rao Committee (HRC) report in 1997. Serious
allegations of corruption claimed that poorer quality materials were used in the dam's
construction, which increased the dam's risk.
7. Conclusion
Mega-infrastructure projects play a critical role in a country’s development and
economic growth. These big structures take many years to develop and build, involve
numerous public and private stakeholders, are transformational, and impact millions
of people (Flyvbjerg, 2014a). The Tehri Dam project was not without controversy and
delays, as is typical of any project of this size. Despite these challenges, the project
now provides much-needed energy security to a large portion of northern India by
providing affordable and renewable hydroelectric power, as well as flood control and
irrigation facilities.

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8. References:
1- Adhikari, B. R. (2010) “Tehri Dam: An Engineering Marvel”, Hydro Nepal:
Journal of Water, Energy and Environment, 5, pp. 26–30. doi:
10.3126/hn.v5i0.2481.
2- Drew, G. (2007) Development within multiple modernities: Place-based
oppositions to development projects along the Ganges River and their
significance dissertation.
3- Dubey, A.K. Cost and time over run in the construction of Tehri Dam Project -
[Doc Document], documents.pub. Available at:
https://documents.pub/document/cost-and-time-over-run-in-the-construction-
of-tehri-dam-project.html (Accessed: November 27, 2022).
4- Ecology is permanent economy: The activism and environmental philosophy of
Sunderlal Bahuguna (2020). Delhi: Motilal Banarsidass Publishing House.
5- Flyvbjerg, B. (2014) “What you should know about megaprojects and why: An
overview,” Project Management Journal, 45(2), pp. 6–19. Available at:
https://doi.org/10.1002/pmj.21409.
6- Hazarika, S. (1992) Soviet collapse endangers Indian Power Projects, The New
York Times. The New York Times. Available at:
https://www.nytimes.com/1992/04/12/world/soviet-collapse-endangers-indian-
power-projects.html (Accessed: November 16, 2022).
7- Hanumantha Rao Committee report: Department of land resources: Ministry of
rural development: Govt. of India (2018) Department of Land Resources |
Ministry of Rural Development | Govt. of India. Available at:
https://dolr.gov.in/en/documents/hanumantha-rao-committee-report-new
(Accessed: November 27, 2022).
8- H.L.Arora(2020) Challenges during Construction and O&M of Tehri
Hydropower Complex [PowerPoint presentation] Available at:
http://bscwr.com/wp-content/uploads/2021/05/CHALLANGES-DURING-
CONSTRUCTION-AND-OM-OF-TEHRI-HYDRO-COMPLEX.pdf (Accessed:
November 29, 2022)
9- India, P.T.of (2013) Govt clears revised cost of Tehri Stage-I project, Business
Standard. Business-Standard. Available at: https://www.business-

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standard.com/article/economy-policy/govt-clears-revised-cost-of-tehri-stage-i-
project-110102000207_1.html (Accessed: November 30, 2022).
10- Khagram, S. (1999) Dams, democracy and development: Transnational
struggles for power and water.
11- Mathur, H.M. (2016) Resettling displaced people: Policy and practice in India.
New Delhi: Routledge India.
12- Reddy, A.A. (2016) Rehabilitation and resettlement in Tehri Hydro Power
Project. Gurgaon, India: Partridge.
13- Sandipa, S. (2014) A case study on Tehri Dam, Academia.edu. Available at:
https://www.academia.edu/9758776/A_CASE_STUDY_ON_TEHRI_DAM
(Accessed: November 27, 2022).
14- StudyMoose. (2016). The History of the Tehri Dam. [Online]. Available at:
http://studymoose.com/the-history-of-the-tehri-dam-essay [Accessed: 30 Nov.
2022]
15- Tortajada, C., Altinbilek, D. and Biswas, A.K. (2014) Impacts of large dams: A
global assessment. Berlin: Springer Berlin.
16- Tehri Dam & HPP (stage-i)-social concern | THDCIL india ltd.. (no date).
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(Accessed: November 26, 2022).
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global assessment. Berlin: Springer Berlin.
18- THDC. (2018).Geology & Geotechnical report (no.-01) of tehri power complex
URLhttps://thdc.co.in/sites/default/files/Geological%20Report%20of%20Tehri
%20Power%20Complex%20-2011-17%20Volume-
I%20%28Ch.%201%20to%204%29.pdf
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at:https://m.economictimes.com/tehri-project-cost-estimate-
approved/articleshow/1343241.cms (Accessed: November 30, 2022).
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2022).
21- Water for Welfare Secretariat, IIT Roorkee (2008) 'Impact of Tehri Dam lesson
learnt'. THDC. Unpublished.