Uttarakhand is endowed with perennial rivers and large network of both rain fed and ice fed rivers that provide immense scope for development of Hydro Power in the State. Hydro power is the clean energy which generates electricity at zero fuel cost. Regulatory issues, Transmission /Power evacuation issues, Environmental concerns, Inter-state perspectives, Law and order issues, Dearth of good contractors, Natural effects, Political issues, Land acquisition problem, Resettlement and Rehabilitation issues, Locational disadvantages, Budgetary requirements, Private sector involvement and Longer gestation period are some of the obstructions which are hindering the development of hydro power plants. This paper reviews the available literature to identify several barriers affecting the development of Hydro Power in Uttarakhand.