Power Ministry revises approval threshold for hydro power projects

The Ministry of Power has issued a notification revising the capital expenditure limit for hydro power projects that require clearance from the Central Electricity Authority (CEA).

According to the notification, hydro generating schemes with an estimated cost exceeding Rs 3,000 crore will now require CEA concurrence. This replaces the earlier threshold notified in April 2006.

The order also clarifies that off-stream closed-loop pumped storage projects will not require CEA approval, regardless of project cost. However, developers of such projects may seek technical guidance from the Authority.

In addition, the notification specifies that all developers must comply with the provisions of the National Dam Safety Act, 2021.