Prime Minister Narendra Modi recently revealed that the Cabinet has given the green light to a new Hydroelectric Projects scheme, which is projected to uplift infrastructure development in far-flung regions within India. The modifications in the scheme aim to spur growth in the hydropower sector, generate employment opportunities, and stimulate investments, according to the PM's announcement on social media platform X.
The Union Cabinet, led by PM Modi, has sanctioned an initiative proposed by the Ministry of Power to amend the scheme of budgetary support for the cost of enabling infrastructure for hydroelectric projects (HEP), with a total allocation of Rs 12461 crore. This scheme, which is planned to be operational from FY 2024-25 to FY 2031-32, is part of the Indian government's efforts to tackle obstacles hindering hydropower development in remote and mountainous regions. In a bid to promote the hydropower sector and enhance its feasibility, the Cabinet had previously endorsed measures such as recognizing large hydropower projects as renewable energy sources, implementing hydropower Power Purchase Obligations (HPOs), tariff rationalization strategies, and providing budgetary support for flood moderation in storage HEP and the construction of enabling infrastructure like roads and bridges.
The revamped scheme is anticipated to expedite the progress of hydroelectric projects, enhance infrastructure in isolated and elevated project sites, create numerous job opportunities for locals, and open up avenues for indirect employment and entrepreneurship through activities like transportation, tourism, and small-scale enterprises. Furthermore, it is expected to attract fresh investments in the hydropower sector, encouraging the prompt completion of new projects and driving growth within the industry.