New Delhi, Aug 28, 2024, SPECIAL CORRESPONDENT

 

New Delhi, Aug 28: The Centre has approved equity support of Rs 4,136 crore to northeastern states for developing hydropower projects, having a total capacity of 15,000 MW over the next eight years.

 

The approval was given on Wednesday at a meeting of the Union Cabinet, chaired by Prime Minister Narendra Modi, an official release said.

 

The meeting approved the proposal of the Ministry of Power for providing central financial assistance (CFA) to the state governments of NER (North East Region) towards their equity participation in the development of hydroelectric projects through Joint Venture (JV) collaboration between state entities and Central Public Sector Undertakings, the release said.

 

The projects would bring huge investment in the northeastern region and provide a large number of direct employment to the local people.

 

The development of hydroelectric projects will also contribute towards the realisation of India's Nationally Determined Contribution (INDC) of establishing 500 GW renewable energy capacity by 2030 and help the integration of RE sources in the grid thus enhancing flexibility, security and reliability of the national grid.

 

The scheme, with an outlay of Rs 4,136 crore, is to be implemented from 2024-25 to  2031-32, Information and Broadcasting Minister Ashwini Vaishnaw told mediapersons.

 

The release said a cumulative hydro capacity of about 15,000 MW would be supported under the scheme. The scheme will be funded through 10 per cent gross budgetary support (GBS) for the northeastern region from the total outlay of the Ministry of Power.

 

The grant towards the equity portion of the state government of NER would be capped at 24 per cent of the total project equity, subject to a maximum of Rs 750 crore per project. The cap of Rs 750 crore for each project will be revisited, if required, on a case-to-case basis.

 

The equity ratio of the CPSU and state government in the JV will be maintained at the time of disbursing of the grant. Central financial assistance would be limited to only viable hydroelectric projects. States would be required to waive or stagger free power and reimburse SGST to make the project viable.

 

With the introduction of this scheme, participation of state governments in hydro development will be encouraged, while the risk and responsibilities will be shared in a more equitable manner, the release said.

 

Issues like land acquisition, rehabilitation & resettlement and local law & order issues would be reduced with state governments becoming stakeholders. This will avoid time and cost over-run of the projects, it added.