Government proposes scheme for hydropower projects with ₹16,000-crore outlay

The power ministry has proposed a scheme with an initial outlay of around ₹16,000 crore to financially support new hydropower projects, people in the know said. The financial support will envisage enabling infrastructure and grant for the north-eastern states to pick stakes in such projects, they said.

The scheme will be part of the broader hydropower policy that has already been sent to the Cabinet for approval last month, one of the people said.

Enabling infrastructure around hydropower projects will get a budgetary support of around ₹12,000 crore. While the enabling infrastructure for such projects currently includes roads and bridges, transmission lines from the power station to the pooling stations too could be added to it as per the proposal. Pumped hydropower storage projects may also get the financial benefits.

North-eastern states that wish to have a joint venture for such projects are likely to be given financial assistance for their stake and the total funds proposed to be earmarked for such support is ₹4,000 crore, the person said.

Most of the potential for new hydropower capacity is in Arunachal Pradesh, another person said.

Identified capacity in Arunachal Pradesh is the highest among states having hydropower potential, as per a report from the Parliamentary Standing Committee on Energy.

States' participation as stakeholders could accelerate the development of such projects. In cases, where the north-eastern states cannot fund their equity infusion, they can avail of the proposed financial assistance, the sources said.

Hydropower in India is gaining momentum as the country is moving towards more renewable energy capacity expansion.