Cabinet Approves Rs. 4,136 Crore Financial Assistance for North Eastern Hydropower Projects

The Indian government has sanctioned a Rs. 4,136 crore financial aid to North Eastern states for hydroelectric projects, aiming to develop 15,000 MW capacity by 2031-32. Joint ventures between state entities and central public-sector undertakings will spearhead these initiatives, boosting renewable energy and regional employment.

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a Rs. 4,136 crore financial package to assist North Eastern state governments with their equity in hydroelectric projects. The initiative is set to be implemented from FY 2024-25 to FY 2031-32, targeting a cumulative hydro capacity of approximately 15,000 MW.

According to the Ministry of Power, the projects will be executed through Joint Venture (JV) collaborations between state entities and Central Public Sector Undertakings (CPSUs). The funding will come with a 10% Gross Budgetary Support (GBS) specifically for the North Eastern Region, drawn from the Ministry of Power's allocations.

The equity share for state governments will be capped at 24% of the total project equity, with a maximum cap of Rs 750 crores per project. The government aims to mitigate issues such as land acquisition, rehabilitation, resettlement, and law and order problems by involving state governments as key stakeholders.

These projects are expected to attract significant investment to the North East, aiding in job creation across several sectors including transportation, tourism, and small-scale businesses. This initiative aligns with India's goal of reaching 500 GW of renewable energy capacity by 2030.

To complement this, the Cabinet had earlier approved policy measures to promote hydropower, such as classifying large hydro projects as renewable energy sources and introducing Hydro Power Purchase Obligations (HPOs). (ANI)

(With inputs from agencies.)