Centre To Provide Rs 4,136 Cr For 15 GW Hydropower Projects in Northeast

• By Thetripurapost Desk, Guwahati
• Aug 28, 2024
• 401

The Union Cabinet on Wednesday approved equity support of Rs 4,136 crore to northeastern states for developing hydropower projects of a total capacity of 15,000 MW (15 GW) over the next eight years.

According to an official statement, the Cabinet meeting chaired by Prime Minister Narendra Modi approved the proposal of the Ministry of Power to provide Central Financial Assistance (CFA) to the state governments of the North Eastern region. This assistance will be given to these states for their equity participation in the development of hydropower projects through joint ventures between the state government and central public sector undertakings.

Giving information about the Cabinet decisions, Information and Broadcasting Minister Ashwini Vaishnaw said that the outlay of this scheme is Rs 4,136 crore and it will be implemented from 2024-25 to 2031-32.

A total of 15,000 MW of hydropower capacity would be supported under the scheme, the statement said.

The scheme will be funded through 10 per cent Gross Budgetary Support (GBS) for the North Eastern Region from the total outlay of the Ministry of Power.

The grant for equity share of the governments of the North Eastern region will be limited to 24 per cent of the total project equity. This will be a maximum of Rs 750 crore per project.

If necessary, the limit of Rs 750 crore for each project will be reconsidered on a case-by-case basis.

The equity ratio of public sector undertakings and State Government in the joint venture will be maintained at the time of disbursement of grants.

Central financial assistance will be restricted to viable hydropower projects only.

The statement said that this scheme will encourage participation of state governments in hydropower development and risks and responsibilities will be shared on equal basis