For Hydro electric projects budgetary support scheme approved by cabinet

The union cabinet meeting chaired by honorable prime minister Mr. Narendra Modi has approved the proposal of the Ministry of Power for modification of the scheme of budgetary support for the cost of Enabling Infrastructure for Hydro Electric Projects (HEP) with a total outlay of Rs.12461 crore.

Time Period

Fy 2024-25 to 2031-32

Budgetary support components

First of all, in this scheme money will be spent on other components rather than roads and bridges.

Transmission line from power house to the nearest pooling point including upgradation of pooling substation of State /Central Transmission Utility
Ropeways
Railway siding
Communication infrastructure

Number game

12461 crore will be spent for cumulative generative capacity of around 31350 MW to be implemented for the years 2024-25 to 2031-32.

Criteria for getting fund

The scheme will be applicable to all Hydro Power Projects of more than 25 MW capacity including the private sector projects
This scheme will also be applicable to all Pumped Storage Projects (PSPs) including Captive/Merchant PSPs
A cumulative PSP capacity of about 15,000 MW would be supported under the scheme.

Budgetary support according to capacity

1.0 crore/MW for projects up to 200 MW
Rs.200 crore plus Rs.0.75 crore per MW exceeding 200 MW, for projects above 200 MW
For exceptional cases the limit of budgetary support may go upto Rs.1.5 Crore/MW provided sufficient justification

Benefits of scheme

Faster development of hydro electric projects
Improve infrastructure in the remote and hilly project locations
Provide large number of direct employment to the local people along with indirect employment
Entrepreneurial opportunities through transportation, tourism, small-scale business
Encourage fresh investments into hydro power sector