The Union Cabinet has approved a revised budgetary support scheme for Hydro Electric Projects (HEP), with a financial outlay of Rs 124.61 billion. The scheme, running from FY25 to FY32, aims to support hydropower projects with a combined capacity of 31,350 MW.
The updated scheme expands infrastructure support to include transmission lines, ropeways, railway sidings, and communication infrastructure, along with strengthening roads and bridges to improve access to remote project sites. This is expected to accelerate hydropower development, particularly in remote and hilly regions that face infrastructure challenges.
Eligible projects must exceed 25 MW in capacity, including those in the private sector. Budgetary support for projects up to 200 MW is set at Rs 1 billion per MW, while larger projects receive Rs 20 billion plus Rs 0.75 billion per MW for additional capacity.