Govt Launches Rs 16,000-Crore Scheme to Accelerate Hydropower Projects

The government has announced a massive budgetary allocation of approximately Rs 12,000 crore to enhance the infrastructure surrounding hydropower projects. Currently, this infrastructure primarily includes the construction of bridges and roads.

However, a new proposal suggests the inclusion of transmission lines from power stations to pooling stations to further improve the enabling infrastructure. Additionally, pumped hydropower storage projects may also benefit from the financial support.

According to a report from the Parliamentary Standing Committee on Energy, Arunachal Pradesh has been identified as the state with the highest hydropower potential among all states. As a result, the proposed budgetary support aims to provide the necessary financial assistance for the development of new hydropower projects, particularly in the northeastern states.

The scheme, which has an initial outlay of approximately Rs 16,000 crore, includes provisions for enabling infrastructure and grants for these states to acquire stakes in the projects.

A source familiar with the matter revealed that the scheme will be part of a broader hydropower policy that was submitted to the Cabinet for approval last month. The policy aims to streamline the development of hydropower projects in the country and promote sustainable energy generation.

In addition to the budgetary support for infrastructure development, the proposed scheme also aims to provide financial assistance to facilitate joint ventures between the northeastern states and other stakeholders. An amount of Rs4,000 crore has been proposed to be earmarked for this purpose, enabling these states to participate as stakeholders in hydropower projects.

The allocation of funds to the northeastern states is expected to accelerate the development of hydropower projects in the region. In cases where these states are unable to fund their equity infusion, they can avail themselves of the proposed financial assistance. This approach seeks to ensure that financial constraints do not hinder the growth of the hydropower sector in the northeast.

With India’s increasing focus on renewable energy capacity expansion, hydropower is gaining momentum as a viable source of clean energy. The government’s proactive measures to allocate significant funds for infrastructure development and provide financial support to stakeholders demonstrate its commitment to promoting sustainable energy generation and realizing the country’s renewable energy targets.

The proposed scheme and hydropower policy underline the government’s recognition of the potential for hydropower projects and its efforts to create a conducive environment for their successful implementation. By investing in hydropower infrastructure and encouraging stakeholder participation, India is taking significant strides towards achieving a greener and more sustainable future.