Government plans to invest $16,000 billion on hydropower projects

The power ministry has recommended a plan with an initial investment of roughly 16,000 crore to help new hydropower projects financially. The financial assistance will include grants and supporting infrastructure that will allow the north-eastern states to choose stakes in such projects. According to one of the persons, the plan would be included in the larger hydropower strategy that was already submitted to the Cabinet for approval last month.

A fiscal support of roughly Rs. 12,000 crore will be given to supporting infrastructure for hydropower projects. While roads and bridges now make up the enabling infrastructure for such projects, the proposal also calls for the addition of transmission lines from the power plant to the pooling stations. Pumped hydropower storage initiatives might potentially profit financially.

The government proposes a hydroproject scheme with a $16,000 crore budget. According to the source, the total sums anticipated to be allotted for such help is 4,000 crore. North-eastern states that seek to form a joint venture for such projects are expected to receive financial assistance for their stake.

Another source stated that Arunachal Pradesh holds the majority of the potential for future hydropower capacity. According to a report by the Parliamentary Standing Committee on Energy, among states with hydropower potential, Arunachal Pradesh has the largest identified capacity.

The involvement of states as stakeholders may hasten the development of such projects. The sources indicated that the north-eastern states may use the proposed financial support if they are unable to fund their equity infusion. Indian hydropower is expanding as the nation strives to increase its capacity for renewable energy.