Modification of Scheme for Budgetary Support has been recently approved by the Union Cabinet for the existing scheme of budgetary support for Hydro Electric Projects (HEPs).
About the Modified Scheme:
- The original scheme, launched by the Ministry of Power in 2019, provided budgetary support for constructing roads and bridges connecting major project infrastructure with state/national highways.
- The modification aims to enhance infrastructure support and address the unique challenges of developing HEPs in challenging terrains.
- Total Outlay: Rs. 12,461 crores.
- Implementation Period: FY 2024-25 to FY 2031-32.
- Funding Coverage: Supports cumulative generation capacity of approximately 31,350 MW.
- Expanded Scope: Includes costs for-
- Construction of transmission lines.
- Development of ropeways and railway sidings.
- Communication infrastructure.
- Roads and bridges.
Eligibility Criteria:
- Hydro Electric Projects (HEPs) with capacity greater than 25 MW.
- Includes private sector projects.
- All Pumped Storage Projects (PSPs).
Previous Measures for Hydro Power Sector:
- Renewable Energy Status: Large HEPs declared as Renewable Energy sources.
- Hydro Power Purchase Obligations (HPOs): Mandate for entities to purchase electricity from HEPs.
- Tariff Rationalization: Measures to reduce hydropower tariff.
- Budgetary Support for Flood Moderation: Applied to storage HEPs.
Challenges in Hydro Electric Projects Development:
- Financial Constraints: High capital intensity and upfront costs.
- Geological Concerns: Difficulties during construction in hilly regions, particularly in the Himalayas.
- Power Evacuation Issues: Remote locations pose challenges in power evacuation.
- Social Issues: Large land acquisition and rehabilitation requirements.
Ref: Source
| UPSC IAS Preparation Resources | |
| Current Affairs Analysis | Topperspedia |
| GS Shots | Simply Explained |
| Daily Flash Cards | Daily Quiz |
Frequently Asked Question:
What is the budget outlay for the modified scheme for hydroelectric projects?
The total outlay for the modified scheme is Rs. 12,461 crores.
What is the implementation period for the modified scheme?
The scheme will be implemented from FY 2024-25 to FY 2031-32.
What is the eligibility criteria for the scheme?
Hydroelectric projects with a capacity of more than 25 MW, including private sector projects and pumped storage projects, are eligible.
What additional infrastructure is covered under the modified scheme?
The scheme now includes support for transmission lines, ropeways, railway sidings, and communication infrastructure.
How much cumulative generation capacity is the scheme expected to support?
The scheme is expected to support a cumulative generation capacity of approximately 31,350 MW.