Prime Minister Modi Approves Rs. 12,461 Crore Scheme for Hydro Electric Projects
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a proposal from the Ministry of Power to modify the budgetary support scheme for Hydro Electric Projects (HEP). The scheme, with a total outlay of Rs. 12,461 crore, will be implemented from FY 2024-25 to FY 2031-32.
To address challenges in developing hydro power in remote and hilly areas, the government has taken several policy initiatives. In March 2019, the Cabinet declared large hydro power projects as Renewable Energy sources and introduced Hydro Power Purchase Obligations (HPOs), tariff rationalization, and budgetary support for flood moderation and infrastructure costs.
Information and Broadcasting Minister Ashwini Vaishnaw announced that the revised scheme aims to accelerate the development of Hydro Electric Projects and improve infrastructure in remote locations. The scheme will support projects with a cumulative generation capacity of about 31,350 MW and will be applicable to all Hydro Power Projects over 25 MW, including private sector projects and Pumped Storage Projects (PSPs).
The budgetary support limit for enabling infrastructure has been set at Rs. 1.0 crore/MW for projects up to 200 MW and Rs. 200 crore plus Rs. 0.75 crore per MW for projects above 200 MW. In exceptional cases, the support may go up to Rs. 1.5 crore/MW with sufficient justification.
The revised scheme is expected to facilitate faster development of hydro electric projects, improve infrastructure in remote and hilly areas, and create numerous direct and indirect employment opportunities. It will also encourage fresh investments in the hydro power sector and incentivize the timely completion of new projects.
Doubts Revealed
Prime Minister Modi -: Prime Minister Modi is the leader of India. He makes important decisions for the country.
Rs. 12,461 Crore -: Rs. 12,461 Crore is a large amount of money. In India, ‘Rs.’ stands for Rupees, which is the currency used.
Union Cabinet -: The Union Cabinet is a group of top leaders in the Indian government who help the Prime Minister make decisions.
Hydro Electric Projects (HEP) -: Hydro Electric Projects use water to create electricity. They are important for providing power to homes and businesses.
FY 2024-25 to FY 2031-32 -: FY stands for Fiscal Year, which is a one-year period used for budgeting and financial purposes. FY 2024-25 means the year starting in 2024 and ending in 2025.
infrastructure -: Infrastructure includes basic facilities like roads, bridges, and power supplies that help a country function smoothly.
Pumped Storage Projects -: Pumped Storage Projects are a type of hydroelectric power plant that can store energy and release it when needed.
31,350 MW -: 31,350 MW stands for 31,350 Megawatts, which is a measure of how much electricity can be produced. One Megawatt can power about 1,000 homes.
employment opportunities -: Employment opportunities mean jobs that people can do to earn money and support their families.
