Cabinet clears ₹4,136 crore for North East Hydropower expansion

The union cabinet Wednesday approved equity support of ₹4,136 crore to North Eastern states for developing hydropower projects, totalling 15,000 MW capacity over the next eight years.

The cabinet gave its go-ahead to a power ministry proposal for a central financial assistance to the northeastern states for up to 24% equity stake in hydro power projects to be developed through a joint venture with the Centre. The scheme would be implemented between FY25-32, an official statement said.

The scheme would be funded through 10% gross budgetary support for the North Eastern Region from the total outlay of the power ministry. The grant towards the equity portion of the state government would be capped at 24% of the total project equity subject to a maximum of ₹750 crore per project.


ET had in July reported that the government was working on a scheme to support equity participation by state governments in hydropower projects in the northeastern region. The scheme entails creating a joint venture for all the projects of a central public sector undertaking with the state government. The cap of ₹750 crore for each project could be revisited on a case-to-case basis.

The ratio of equity of the central public sector unit and the state government in the JV would be maintained at the time of disbursing of the grant. The grant would be limited to viable hydro projects and states have to waive off or stagger free power and reimburse state Goods and Services Tax to make the project viable.