Himachal Pradesh is being reckoned as Prospective Power House of Northern India. Himachal has identified Hydel power generation potential of over 20,000 M.W. against which a meager potential has been tapped so far. The Govt. of H.P. has accorded highest priority to tap this Hydel power potential and as a result number of MOUs for mini/Micro, Medium and Big power projects have been signed. The main feature of the approach is that private sector is being given the priority, which gives scope for financing to the bank. As far as economic viability of the sector is concerned, keeping in view the huge gap in demand & supply in the Northern Grid, there would not be any dearth of demand for the product in the near future, which motivated to prepare the scheme.