Union Cabinet modified the scheme for faster development of Hydro Electric Projects (HEP) and improvement of infrastructure in remote and hilly project locations.
- Scheme of Budgetary support for cost of enabling infrastructure for HEP was launched by Ministry of Power in 2019, along with other measures to promote hydropower sector in India.
- It provided budgetary support for constructing roads and bridges connecting major dam, power house and other project infrastructure with nearest state/national highway.
Modified Scheme
- Funding: Total outlay of Rs.12,461 crore for cumulative generation capacity of about 31,350 MW.
- Implementation Period: FY 2024-25 to FY 2031-32.
- Expansion: Scheme expanded to include costs for constructing transmission lines, ropeways, railway sidings, and communication infrastructure, in addition to roads and bridges.
- Eligibility: HEPs >25 MW capacity including private sector projects and all Pumped Storage Projects (PSPs).
Other Measures for Development of HEP
- Declaring Large Hydro Power projects (> 25 MW projects) as Renewable Energy sources.
- Hydro Power Purchase Obligations (HPOs) requiring entities to purchase electricity from HEPs.
- Tariff rationalization measures for bringing down hydropower tariff
- Budgetary support for flood moderation / Storage HEPs.
Challenges with HEP development
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