The Power Ministry has authorized changes to the budgetary support scheme for hydroelectric projects.

16 Sep 2024

The Power Ministry has approved updates to the budgetary support scheme designed for infrastructure costs related to hydroelectric projects (HEPs). The scheme, with a total budget of Rs 124.61 billion, will be in effect from 2024-25 to 2031-32. The revisions broaden the scope of eligible expenses to include not only roads and bridges but also transmission lines, ropeways, railway sidings, and communication infrastructure.

This scheme will back projects with a combined generation capacity of approximately 31,350 MW, covering both private sector and pumped storage initiatives. Projects that receive a letter of award by June 30, 2028, qualify for support. The funding cap is Rs 10 million per MW for projects up to 200 MW, and Rs 20 million plus Rs 7.5 million per MW for projects exceeding 200 MW, with the possibility of an increase to Rs 15 million per MW in exceptional cases.