The Union Cabinet has approved Central Financial Assistance for Hydro Electric Projects in NER (North Eastern Region) by 15,000 MW through state-supported Hydro Electric Projects (HEPs).
Key Highlights:
- This scheme will run from FY 2024-25 to FY 2031-32, with funding sourced from 10% Gross Budgetary Support (GBS) allocated from the Ministry of Power’s outlay for the NER.
- The total budget for the initiative is Rs 4,136 crore.
- Objective: The primary goal is to enhance the hydroelectric capacity in the NER by 15,000 MW through the development of viable HEPs.
- The scheme will facilitate the formation of Joint Venture (JV) companies between Central Public Sector Undertakings (CPSUs) and the state governments.
- These JVs will manage and implement the hydro projects.
- The CFA will cover up to 24% of the state government’s equity contribution, with a cap of Rs 750 crore per project.
- This cap is subject to adjustment based on project needs.
- Significance:
- This initiative is expected to boost investment and entrepreneurship in the NER, while also contributing to India’s Nationally Determined Contributions (NDCs) towards climate goals.
- The scheme is designed to ensure that only viable projects are supported, with provisions for state governments to adjust or waive certain financial obligations to enhance project feasibility.
Ref: Source
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Frequently Asked Question:
What is the duration of the CFA scheme for HEPs in the NER?
The CFA scheme will run from FY 2024-25 to FY 2031-32.
How much is the total budget allocated for the CFA scheme?
The total budget allocated for the CFA scheme is Rs 4,136 crore.
What is Gross Budgetary Support (GBS)?
Gross Budgetary Support (GBS) is the portion of the government’s budget allocated to fund various schemes and projects.