The country added only 39 Mw to hydel power generation capacity in 2009-10.
"Only one unit of APGenco's 234 Mw Jurala Priyadarshini in Karnataka became functional during the previous fiscal," a power ministry official said.
The Rs 547-crore Jurala Priyadarshini Hydro Electric Project is under execution on River Krishna at Revulapalli village in Mahaboobnagar district in Karnataka.
The first two units i.E. 2x39 Mw of the Jurala plant were commissioned in 2008 while the remaining three units are scheduled to be commissioned during the current financial year (2010-11).
Karnataka will buy nearly 58 Mw from the plant through Power Purchase Agreement (PPA).
Power Finance Corporation (PFC), has sanctioned a loan of Rs 438 crore, or 80 per cent of the total cost, for the project.
At present, hydro power contributes about 25 per cent of the total installed electricity capacity in the country at 36,863.40 Mw.
The total installed capacity of the country stands at 1,57,229.48 Mw.
Meanwhile, the country's largest power producer, NHPC, which currently generates 5,175 Mw plans to add over 5,000 Mw by the terminal year of the current XIth Five-Year Plan Period (2007-12).