Green developmentalism? The political economy of hydropower in India in the 21st century

This article critically examines the political economy of hydropower in India since its global reconfiguration as ‘green energy’ in the early 2000s. While an expedient convergence of interests amongst key stakeholders- global, national and subnational- contributed to the greening of hydropower in India, this reframing did not produce the expected flows of private capital. The state has persisted in its support for hydropower development citing its importance for grid stabilisation and national security. To understand why the Indian state frames hydropower as green energy and continues to pursue it despite challenges in attracting private investment, the article posits that this greening experiment must be situated within a longer continuum of state policy towards hydropower. It argues that the greening of hydropower is driven less by global finance and more by domestic political economy. In particular, the state has adopted political and financial de-risking techniques that include diluting environmental regulation and easing access to credit, while handling contentious elements such as land acquisition, absorbing stalling projects when all else fails. It concludes that the Indian case of greening hydropower represents a distinctive form of green developmentalism, where the state pursues its long-term agendas, protects powerful interests, and leaves coal hegemony untouched.