Power system in Bihar is predominant by thermal power generation and the contribution of hydro power is only 5%. In order to exploit the available renewal source of energy, Govt. of Bihar is desirous and committed to encourage rapid
development of hydro power in the State at the earliest. The key objective of the policy is: To enhance the over all generation capacity of the state including Hydro power; In order to achieve the above objective, the Govt, of Bihar had issued a policy guideline for private sector participation for developing non-conventional energy sources in 2003 which included policy for hydro energy. This policy would be known as Bihar State Hydro-power Policy - 2012.