Cabinet approves Rs 12,461 crore for hydropower development

The Union Cabinet has approved Rs 12,461 crore for developing 31,350 MW of hydropower projects between FY25 and FY32, aiming for 500 GW of renewable energy by 2030. The revised scheme expands budgetary support for essential infrastructure and applies to projects over 25 MW, including private and pumped storage projects.

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The Union Cabinet has approved an allocation of Rs 12,461 crore for developing 31,350 MW of hydropower projects between FY25 and FY32, aiming to achieve the target of 500 GW of renewable energy capacity by 2030. To expedite the development of hydroelectric projects and enhance infrastructure in remote project areas, the Cabinet has made changes to the previous scheme. These modifications expand budgetary support for essential infrastructure, including roads, transmission lines, ropeways, railway sidings, and communication networks.

The revised scheme will apply to all hydropower projects over 25 MW, including private sector projects allocated transparently. It will also cover all pumped storage projects (PSPs), including captive and merchant PSPs, with a cumulative PSP capacity of about 15,000 MW expected to receive support under this scheme.

In terms of budgetary support, the government has rationalized the limit 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. The government also stated, “For exceptional cases the limit of budgetary support may go up to Rs 1.5 crore per MW provided sufficient justification exists.”

The government emphasized that “this revised scheme would help in faster development of hydroelectric projects, improve infrastructure in remote and hilly project locations, and provide a large number of direct employment opportunities to local people.” It added that the changes would encourage fresh investments in the hydropower sector and incentivize the timely completion of new projects.

Overall, the modified scheme aims to accelerate project development, improve infrastructure in challenging locations, and boost local employment while contributing to India’s renewable energy goals.