
The Central Electricity Authority (CEA) has issued comprehensive new guidelines for hydropower project tendering and construction to address persistent cost overruns and geological uncertainties. According to reports from Business Standard, these guidelines are designed to minimise geological uncertainties, reduce time and cost overruns, cut contractual disputes and boost investor confidence in the sector. The guidelines recommend the use of advanced technologies, call for increased transparency in tender documents, require continuous geological monitoring during construction, and mandate stronger safety measures for workers.
The guidelines recommend advanced remote-sensing techniques through satellites, aircraft and drones equipped with light detection and ranging (LiDAR) systems to carry out high-resolution surface geological mapping and develop a 3D digital terrain model of the proposed tunnel alignment. As reported by Business Standard, geophysical surveys such as Seismic Refraction Tomography (SRT) should be conducted throughout the length of diversion tunnels. Based on conventional and advanced geological technologies, a Geotechnical Baseline Report (GBR) can be included in tender documents to show anticipated rock mass quality and hydrogeological conditions. The guidelines also call for a higher budget for geological investigations to ensure comprehensive pre-construction assessment.
The guidelines address significant cost overrun issues in the hydropower sector, with 90 per cent of infrastructure and hydropower projects globally exceeding their budgeted costs. According to Business Standard, tunnelling projects on average exceed their expected costs by 50 per cent. In the Himalayas, ground conditions are often unpredictable, with problems such as sudden water leakage, folded rock layers and high levels of seismicity, which result in significant time and cost overruns. Due to ground-related hazards – landslides, soil subsidence, and liquefaction – often encountered during tunneling, these challenges trigger contractual disputes, variation claims and erosion of stakeholder confidence.
To handle weak and difficult geological conditions in tunnels, the guidelines require advanced safety and stabilisation measures including regular monitoring of excavated tunnel sections using standard instruments to detect movement or instability early. As reported by Business Standard, controlled blasting methods should be used in very hard or stressed rock zones to reduce the chance of rock bursts. In twin-tunnel projects, construction of a connecting tunnel is mandatory to provide emergency escape routes for workers in case of collapse, flooding, fire or gas leakage. The guidelines emphasize that tunnels are essential components of hydropower infrastructure, but their construction is deeply sensitive to subsurface geological conditions.
According to the CEA, these guidelines may help in preparing a bankable detailed project report (DPR) during the survey and investigation stage, preparation of comprehensive bid documents, and improvement in construction-stage geological activities. The comprehensive approach is expected to enhance overall project planning and execution efficiency while reducing the financial and operational risks associated with hydropower infrastructure development. The guidelines are likely to help in the planning and execution of hydroelectric projects, addressing the critical need for improved project management in India's hydropower sector.