New Delhi: The Union Cabinet approved an outlay of Rs 12,461 crore to enable the development of 31,350 MW hydropower projects in remote areas of the country. According to an official statement, the scheme will be implemented for a period of 8 years starting from FY2024-25 to FY2031-32. For projects up to 200 MW, the limit of budgetary support has been rationalized to Rs one crore per MW, whereas for projects exceeding 200 MW, the support will be increased to Rs 200 crore plus 0.75 crore per MW.
According to PM Narendra Modi, the hydroelectric projects in remote areas will help in bolstering the infrastructure of the regions. It will promote hydropower growth, create employment opportunities, and drive investments in the sector. In the past, the Government has taken various policy initiatives to address the issue of impending hydropower development in locations and hilly areas. In March 2019, the Government declared large hydropower projects as renewable energy sources, introduced Hydro Power Purchase Obligations (HPOs), tariff rationalization measures, budgetary support for flood moderation through Hydro-electric Power (HEP) storage, and enabled infrastructure development, i.e. construction of roads and bridges.
The present scheme, in particular, will help in faster development of HEP Projects and improve infrastructure in remote areas. In addition, it will provide direct and indirect employment to the locals through entrepreneurial opportunities such as transportation, tourism, and small scale businesses. It will also develop new investment opportunities in the HEP sector which will help in incentivising timely completion of the upcoming projects.
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