The Government of India has expanded its budgetary support scheme for the cost of enabling infrastructure for hydropower projects. This expansion aims to accelerate the development of the hydropower sector in the country.
The scheme now includes support for the construction of transmission lines, ropeways, railway sidings, and communication infrastructure in addition to roads and bridges. The scheme applies to hydropower projects with a capacity of more than 25 MW, including private sector projects and pumped storage projects.
Projects with Letters of Award issued before June 30, 2028, are eligible for support under the scheme.
Budgetary Support:
- The maximum budgetary support per MW has been increased to ₹1.5 crore in exceptional cases.
- The total outlay for the scheme has been set at ₹12,461 crores for the period 2024-25 to 2031-32.
This expanded scheme is expected to support the development of approximately 31 GW of hydropower capacity, including 15 GW of pumped storage projects. The government aims to reduce project costs and make hydropower projects more economically viable.
