Scheme of budgetary support for the cost of Enabling Infrastructure for Hydro Electric Projects (HEP)

About Scheme of budgetary support for the cost of Enabling Infrastructure for Hydro Electric Projects (HEP):

• This scheme, set to run from FY 2024-25 to FY 2031-32, aims to enhance infrastructure and support the development of hydro power in India.
• The scheme addresses major challenges such as remote locations and inadequate infrastructure by broadening its scope to cover additional costs.
  • This includes funding for the construction of transmission lines, upgrading pooling substations, and developing ropeways, railway sidings, and communication infrastructure.
  • It also supports the strengthening of existing roads and bridges leading to project sites.
• The scheme is set to supporthydro power projects with a cumulative generation capacity of approximately 31,350 MW.
• It applies to all hydro projects over 25 MW, including private sector projects, and Pumped Storage Projects (PSPs).
• Budgetary support limits have been revised to Rs. 1 crore per MW for projects up to 200 MW, and Rs. 200 crores plusRs. 0.75 crore per MW for projects above 200 MW, with potential increases up to Rs. 1.5 crore per MW in exceptional cases.
• The scheme also incorporates a rigorous approval process, where budgetary support will be granted following cost appraisals by the Department of Investment and Public Asset Management (DIB) and Public Investment Board (PIB), and subsequent approval by the Competent Authority.
• The projects whose Letter of Award of the first major package is issued by June 30, 2028, will be eligible under the scheme. 

Q1: What is HydroElectric Power?

Hydroelectric power, electricity produced from generators driven by turbines that convert the potential energy of falling or fast-flowing water into mechanical energy.

Source: Cabinet approves Modification of the scheme of Budgetary Support for the cost of Enabling Infrastructure for Hydro Electric Project

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