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As per the survey conducted by the UREDA, 15449 traditional watermills (Gharats) exist in working or defunct condition. UREDA is engaged in up-gradation of these traditional watermills for mechanical, electrical and electromechanical use with the financial support of MNRE.

Up-gradation and production of new modern technologies specially designed for the grass root conditions of the area are being taken up in a big way so that the productivity of this important section of population gets increased and they get heigher returns with lesser efforts. Upgradation of such traditional watermills can be great source of employment generation.

The up-graded watermills of this hilly region are an essential and important critical souce of energy in remote areas. These watermills not only provide electricity to small areas but are also used for grinding grains. Up-graded watermill produces power up to 5 KW which is sufficient for electrification of 15-20 families within the diameter of 500 meters. Small Scale Industry Department, Government of India has declared Watermill (Gharat) as Small Scale Industry and State Government has exmpted Watermill parts and products from VAT.

For the upgradation of traditional watermill State Government is providing a subsidy of Rs. 6000/- per Watermill apart from the subsidy by MNRE i.e. Rs. 1.10 Lakhs for up-gradation for electrical/electromechanical output and Rs. 35,000/- for mechanical output.