The Union Cabinet on Wednesday approved an allocation of Rs 12,461 crore for development of 31,350 megawatt (MW) of hydropower projects to be implemented between FY25 to FY32 in order to achieve the target of 500 GW of renewable energy capacity by 2030.
For the faster development of hydro electric projects and improvement of infrastructure in the remote project locations, the Cabinet had approved modifications in the earlier scheme widening the budgetary support for the cost of enabling infrastructure including roads, transmission lines, ropeways, railway sidings, and communication infrastructure.
The modified scheme will be applicable to all hydro power projects of more than 25 MW capacity including the private sector projects which have been allotted on a transparent basis. This scheme will also be applicable to all pumped storage projects (PSPs) including captive and merchant PSPs. A cumulative PSP capacity of about 15,000 MW would be supported under the scheme, the government said.
Furthermore, the limit of budgetary support has been rationalized to Rs.1.0 crore per MW for projects up to 200 MW and Rs 200 crore plus Rs 0.75 crore per MW for projects exceeding 200 MW. “For exceptional cases the limit of budgetary support may go up to Rs 1.5 crore per MW provided sufficient justification exists,” the government said.
“This revised scheme would help in faster development of hydro electric projects, improve infrastructure in the remote and hilly project locations and would provide a large number of direct employment to the local people. It would encourage fresh investments into the hydro power sector and incentivize timely completion of new projects,” it said.
From: financialexpress
Financial News
