Govt Approves Rs 12,461 Cr Support For 31,350 MW Hydro Power Projects

Union Minister Ashwini Vaishnaw briefs the media on Cabinet decisions, in New Delhi
  • Cabinet approves construction of 62,500 km roads under PM Gram Sadak Yojana-IV

New Delhi, Sep 11: The Union Cabinet on Wednesday approved an outlay of Rs 12,461 crore to support the development of 31,350 MW hydropower projects to be implemented over the next eight years.

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The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the proposal of the Ministry of Power for modification of the scheme of budgetary support for the cost of enabling infrastructure for Hydro Electric Projects (HEP) with a total outlay of Rs 12,461 crore, an official statement said.
According to the statement, the scheme will be implemented from FY2024-25 to FY2031-32.
The limit of the budgetary support for the cost of enabling infrastructure has been rationalised to Rs 1 crore per MW for projects up to 200 MW capacity and Rs 200 crore plus Rs 0.75 crore per MW for projects above 200 MW capacity.
For exceptional cases the limit of budgetary support may go up to Rs 1.5 crore/MW provided sufficient justification exists.
The scheme has a total outlay of Rs 12,461 crore for cumulative generation capacity of about 31,350 MW to be implemented from FY 2024-25 to FY 2031-32, the statement said.
The scheme will be applicable to all hydro power projects of more than 25 MW capacity, including the private sector projects which have been allotted on a transparent basis.
This scheme will also be applicable to all pumped storage projects (PSPs) including captive/merchant PSPs, provided the project has been allotted on a transparent basis.
A cumulative PSP capacity of about 15,000 MW would be supported under the scheme.
The projects whose Letter of Award of first major package is issued up to June 30, 2028 would be considered under this scheme.
The statement said that the move would widen the ambit of the budgetary support for cost of enabling infrastructure by including four more items apart from construction of roads and bridges.
These four items include the cost incurred for the construction of transmission line from power house to the nearest pooling point including upgradation of pooling substation of state/central transmission utility, ropeways, railway siding, and communication infrastructure.
The strengthening of existing roads/bridges leading to the project will also be eligible for central assistance under this scheme.
The budgetary support for cost of enabling infrastructure will be provided after appraisal of the cost of enabling infrastructure by the DIB/PIB and approval of the competent authority as per extant guidelines.
The government has been taking several policy initiatives to address the issues impeding hydro power development, viz., remote locations, hilly areas, lack of infrastructure etc.
To promote the hydro power sector and to make it more viable, the Cabinet in March 2019, approved measures, namely declaring large hydro power projects as renewable energy sources, Hydro Power Purchase Obligations (HPOs), tariff rationalization measures through escalating tariff, budgetary support for flood moderation in storage HEP (Hydro Electric Projects) and budgetary support for the cost of enabling infrastructure, i.e., construction of roads and bridges.
For the faster development of hydro electric projects and improvement of infrastructure in the remote project locations, the modifications have been made in the earlier scheme.
This revised scheme would help in faster development of hydro electric projects, improve infrastructure in the remote and hilly project locations and provide large number of direct employment to the local people along with indirect employment/ entrepreneurial opportunities through transportation, tourism, and small-scale business.
Besides, it would encourage fresh investments into hydro power sector and incentivise timely completion of new projects.
Meanwhile, The Union Cabinet approved the proposal of the Department of Rural Development for implementation of the Pradhan Mantri Gram Sadak Yojana-IV during financial year 2024-25 to 2028-29.
The financial assistance is to be provided for the construction of 62,500 km road for providing new connectivity to eligible 25,000 unconnected habitations and construction and upgradation of bridges on the new connectivity roads, an official statement said.
The Pradhan Mantri Gram Sadak Yojana-IV (PMGSY-IV) has been launched for financial year 2024-25 to 2028-29 with a total outlay of Rs 70,125 crore, of which the central share is Rs 49,087.50 crore and state share is Rs 21,037.50 crore.
Under this scheme, 25,000 unconnected habitations of population size of over 500 in plains and over 250 in Northeast and hill states, Union Territories and special category areas and over 100 in Left Wing Extremism (LWE)-affected districts according to Census 2011 will be covered.
All-weather roads measuring 62,500 km will be provided to unconnected habitations. The construction of required bridges along the alignment of the all-weather road will also be provided, the statement said.
The all-weather roads will play the role of catalysts for the required socio-economic development and transformation of the remote rural areas, it added.
“While connecting habitations, the nearby government educational, health, market and growth centres will be connected, as far as feasible, with the all-weather roads for the benefit of the local people,” it said.
PMGSY-IV will incorporate international benchmarks and best practices under road constructions such as cold mix technology and waste plastic, panelled cement concrete, cell filled concrete, full depth reclamation, use of construction waste and other wastes such as fly ash and steel slag.
PMGSY-IV road alignment planning will be undertaken through the PM Gati Shakti portal. The planning tool on PM Gati Shakti portal will also assist in detail project report (DPR) preparation. (Agencies)