Union Cabinet Approves Rs 12,461 CR Support For 31,350 MW Hydro Power Projects

The Union Cabinet on Wednesday nodded to the proposal of the Ministry of Power for modification of the scheme of budgetary support for the cost of enabling infrastructure for hydroelectric projects with a total outlay of Rs 12,461 crore.

New Delhi:The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the proposal of the Ministry of Power for modification of the scheme of budgetary support for the cost of Enabling Infrastructure for Hydro Electric Projects (HEP) with a total outlay of Rs. 12461 crore. The scheme would be implemented from Financial Year 2024-25 to FY 2031-32, Information and Broadcasting Minister Ashwini Vaishnaw said. The scheme has a total outlay of Rs 12,461 crore for cumulative generation capacity of about 31350 MW to be implemented from FY 2024-25 to FY 2031-32.

The Union Minister said the scheme will be applicable to all Hydro Power Projects of more than 25 MW capacity including the private sector projects which have been allotted on a transparent basis. This scheme will also be applicable to all Pumped Storage Projects (PSPs) including Captive/Merchant PSPs, provided that the project has been allotted on a transparent basis. A cumulative PSP capacity of about 15,000 MW would be supported under the scheme.

This revised scheme would help in faster development of hydroelectric projects, improve infrastructure in the remote and hilly project locations and would provide a large number of direct employment to the local people along with indirect employment / entrepreneurial opportunities through transportation, tourism, small-scale business. It would encourage fresh investments into the hydro power sector and incentivize timely completion of new projects.

Besides these, the proposal of the Department of Rural Development for “Implementation of the Pradhan Mantri Gram Sadak Yojana - IV (PMGSY-IV) during Financial Year 2024-25 to 2028-29” has also been approved by the Cabinet. The financial assistance is to be provided for the construction of 62,500 Kms road for providing new connectivity to eligible 25,000 unconnected habitations and construction/upgradation of bridges on the new connectivity roads. Total outlay of this scheme will be Rs. 70,125 crore, Union Minister said.