New Delhi: The Union Cabinet has approved a proposal worth Rs 4136 crore for providing central financial assistance to states in the northern eastern region for the development of hydro electric projects. The funding will be provided through 10 percent of the gross budgetary support of the state concerned from the total outlay of the Ministry of Power, a PIB press release stated.
Under the scheme, a joint venture will be formed between the state government and the central public sector undertaking for each project. The state government will have a maximum equity stake of 24 percent in the joint venture company, subject to a maximum of Rs 750 crore per project. The amount of the state government’s equity stake in each project will be determined on a case-by-case basis, if required.
The state governments will be required to waive or stagger free power and reimburse SGST to make the project viable. The development of hydroelectric projects in the northern eastern region will provide employment opportunities to the local people and also contribute towards the realization of India’s target of generating 500 gigawatts of renewable energy capacity by 2030.
The government has approved the proposal to provide central financial assistance for the development of hydro electric projects in the northern eastern region. This scheme will provide a boost in the country’s efforts to promote hydro power and enable sustainable development.