This piece originally appeared in the India Business Council for Sustainable Development quarterly magazine, Volume 8, Issue 2, in July 2011.
In August of 2010, the Indian electricity company Satluj Jal Vidyut Nigam Ltd (SJVN) lost its source of power in Himachal Pradesh. Deforestation and river alterations upstream of the company’s dam had aggravated erosion in the area. Without the trees, heavy rains washed an unprecedented amount of sediment straight into the water, lowering dam reservoir capacity and power output. The resulting 22 days of closure for the facility left millions of people without power and cost the company upwards of $42 million, or INR. 198 Crore.