The Government of Uttarkhand, has taken the initiative of developing its Small Hydel Projects potential through the participation of the private sector in the Development of the Hydro Power Potential of the State, to meet the increasing demand for electrical power in the Uttarkhand State as well as in the Northern region of India.  As a part of its policy on development of the Small Hydro Power Potential, the Government of Uttarkhand has allotted the implementation of the Small Hydel Projects on the Sarju River in Bageswar District, namely the Sarju - I, Sarju - II, and Sarju - III Projects to M/s.Uttarbharat Hydro Power Private Ltd., New Delhi.  The Developers have entered into Implementation Agreements with the Government of Uttarkhand in the year 2004 – 2005 with a lease period of 40 years. The Detailed Project Reports for the 3 Projects have be prepared by M/s.Indo-Canadian Consultancy Services Ltd., New Delhi (ICCS).  These DPR’s are further examined by the Department of Water Resources Development and Management, Indian Institute of Technology, Roorkee in December 2007 before the start of the implementation.


The Installed capacities of the 3 projects as proposed in the DPR for the Projects is as below:

Sarju - I


Sarju - II


Sarju - III



    After the preconstruction activities of financial closure and fixing up of agencies for the supply of the generating and other equipment and the construction of Civil Engineering Works of all the 3 Projects, the actual construction work on the Sarju – II and Sarju – III Projects has been started since December 2008.  The work on Sarju – I is yet to start.  However the purchase orders for supply of generating equipment and other equipment for all 3 projects have been placed.

    During May 2009, M/s.Uttarbharat Hydro Power Pvt. Ltd., (M/s.UBHPPL) has sought financial investments from other prospective Developers for the purpose of meeting the cost of development of the projects and has circulated an investment note.  M/s.Hemavathy Power and Light Pvt. Ltd., Bangalore (M/s.HPLPL) have engaged the services of M/s.Design Group Project Consultants Pvt. Ltd., Bangalore (DGPCPL) for a critical Due Diligence Study of the Sarju – I, Sarju – II and Sarju – III Projects and submission of a report thereon, for assistance in the investment decision to be made Consequently M/s.DGPCPL has made a visit to the Developers offices, the Project Sites and has collected the details of the present status of the implementation of the 3 Small Hydel Projects.  A detailed Study of the geology of the area, and the project sites and the works sites has also been under taken for a detailed assessment. The succeeding paragraphs cover the detailed study of the Hydrology, Power Potential and cost estimate based on the records made available and the data collected from the Developers, the site inspection and the detailed drawings issued for constructions.

    Based on the site inspection, drawings and details made available, the Due Diligence Report have been preapared for M/s Hemavathy Power & Light Pvt. Ltd., Bangalore.