Centre greenlights hydropower in Northeast with Rs 4.1 billion assistance

The Union Cabinet has approved central financial assistance for developing hydropower projects in the northeastern region (NER). The scheme, proposed by the Union power ministry, will provide financial support to state governments in NER for their equity participation in hydropower projects.  

The scheme has a budget of Rs 4.1 billion and will be implemented from FY25 to FY32. It aims to support the development of approximately 15,000 MW of hydropower capacity. Funding for the scheme will come from 10% of the Gross Budgetary Support allocated for the North Eastern Region from the Ministry of Power’s total budget.

Under the scheme, a joint venture company will be formed for each project between a Central PSU and the state government. The central assistance will cover up to 24% of the project equity, with a maximum of Rs 7.5 billion per project. This cap can be revisited on a case-by-case basis. Central Financial Assistance will only be provided to viable hydropower projects, and states may need to waive free power or reimburse SGST to ensure project viability.

India’s estimated hydropower potential from large plants currently stands at 1,33,410 MW, with NER accounting for about 42% or 55,930 MW.