Hydro, Pumped Storage Energy Projects To Get Additional Budgetary Support
The Union Cabinet approved the Ministry of Power's proposal to modify the budgetary support provided for hydro electric projects, as per the press information bureau. The budgetary support will now include construction costs for enabling infrastructure in order to promote faster development of hydro electric projects, improving infrastructure in the remote project locations.
The total outlay of the scheme is set at Rs 12,461 crore and will be applicable to pumped storage energy projects as well. The scheme is set to be implemented from fiscal 2025 to fiscal 2032.
This stands to benefit players like NHPC Ltd., SJVN Ltd., NTPC Ltd., Tata Power Co., Adani Green Energy Ltd., and JSW Energy Ltd., who are developing projects in the space. The scheme will aid in reducing companies' capital cost for setting up the projects.
Scheme Details And Modifications
Budgetary support will now cover costs for setting up enabling infrastructure. It will include the cost of construction incurred for transmission lines connecting power houses from the nearest pooling point, ropeways, railway siding, and communication infrastructure.
The total outlay is for a cumulative generation capacity of about 31,350 MW.
The scheme will be applicable to all hydro power projects of more than 25 MW capacity, including private sector projects.
The scheme will also be applicable to all pumped storage projects. A cumulative PSP capacity of about 15,000 MW would be supported under the scheme.
Scheme applicable for projects whose letter of awards are issued up to June 30, 2028.
Support to be provided after appraisal by DIB/PIB and approval by Competent Authority.
Limit Of Budgetary Support
For projects with capacity below and equal to 200 MW: Support capped at Rs 1 crore per megawatt.
For projects with capacity over 200 MW: Support calculated as Rs 200 crore, plus Rs 0.75 crore per megawatt for each additional megawatt beyond 200 MW.
Exceptional cases: Support could be raised up to Rs 1.5 crore per megawatt if the cases are provided with strong justification.
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