Guwahati: The Centre has approved equity support of Rs 4,136 crore to northeast states for developing hydropower projects, with a total capacity of 15,000 MW within the next eight years.
Prime Minister Narendra Modi-led Cabinet has approved the proposal of the Ministry of Power for providing central financial assistance (CFA) to the state governments of NER (North East Region) towards their equity participation in the development of hydroelectric projects through Joint Venture (JV) collaboration between state entities and Central Public Sector Undertakings, an official statement said.
Information and Broadcasting Minister Ashwini Vaishnaw stated this scheme has an outlay of Rs 4,136 crore to be implemented from 2024-25 to 2031-32.
A cumulative hydro capacity of about 15,000 MW would be supported under the scheme.
The funding for the program will come from 10 percent of the Ministry of Power’s total budget through gross budgetary support (GBS) for the northeastern region.
The grant towards the equity portion of the state government of NER would be capped at 24 per cent of the total project equity, subject to a maximum of Rs 750 crore per project.
The cap of Rs 750 crore for each project would be revisited, if required, on a case-to-case basis.
The equity ratio of the CPSU and state government in the JV will be maintained at the time of disbursing of the grant.
Financial support from the government will be restricted to hydroelectric projects that are deemed feasible.
To ensure the project is feasible, states must waive or adjust electricity charges and refund SGST.
The scheme aims to promote the involvement of state governments in hydro development and ensure a fair sharing of risks and responsibilities, according to the statement.
It has been pointed out that this will lead to significant investment in the northeastern area and will result in a substantial amount of job opportunities for the local residents.
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The development of hydroelectric projects will also contribute towards the realisation of India’s Nationally Determined Contribution (INDC) of establishing 500 GW renewable energy capacity by 2030 and help the integration of RE sources in the grid thus enhancing flexibility, security and reliability of the national grid.
