Govt issues guidelines for hydro power projects to get budgetary support

By: |
October 01, 2021 4:00 AM

The ministry said the amount required for flood moderation and storage costs shall be released after appraisal of each project on a case-to-case basis by the public investment board or the Cabinet Committee on Economic Affairs.

The basic objective of the budgetary support is to reduce the tariffs of electricity produced from these projects by excluding the expenses that are not directly related to power generation.The basic objective of the budgetary support is to reduce the tariffs of electricity produced from these projects by excluding the expenses that are not directly related to power generation.

The Union power ministry has issued detailed guidelines for under-construction hydro power projects to receive budgetary support on expenses incurred on flood moderation infrastructure and associated roads and bridges.

The basic objective of the budgetary support is to reduce the tariffs of electricity produced from these projects by excluding the expenses that are not directly related to power generation.

The ministry said the amount required for flood moderation and storage costs shall be released after appraisal of each project on a case-to-case basis by the public investment board or the Cabinet Committee on Economic Affairs.

The budgetary support for building enabling infrastructure like roads and bridges will also be calculated on a case-to-case basis, and the limit of this component would be Rs 1.5 crore per MW for projects up to 200 MW and Rs one crore per MW for projects of more than 200 MW capacity.

The support shall be provided only for projects which started construction March 2019.

when the Cabinet approved providing such budgetary assistance to hydro power projects. The government had then also classified conventional hydropower and pumped hydro projects greater than 25 MW as a renewable energy source, making them eligible for more affordable renewables-only financial support.

Currently the installed capacity of the 207 hydro power projects running in the country is 46,209 MW. More than 9,000 MW of large hydro projects are under construction at present.

Buoyed by the increasing policy support from the government, the International Energy Agency expects the country to add 26,000 MW of hydro power projects by 2030.

The government has recently approved projects including the 210 MW Luhri Stage-I hydro-electric project in Himachal Pradesh and an 850 MW Ratle hydro-electric project on the river Chenab in Jammu and Kashmir.

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