Government issues guidelines for Hydro Electric Projects to get budgetary support

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Recently, the Ministry of Power has issued guidelines for budgetary support in hydroelectric projects.

Ministry of Power has issued guidelines for budgetary support for flood control and efficient infrastructure (roads and bridges) in respect of hydroelectric projects.

The budgetary support is aimed at reducing the tariff for electricity generated from these projects. Thus it will be ensured that only the cost related to electrical components is recovered from the consumers.

The mechanical energy of running water is converted into electricity to generate hydroelectricity.

Hydroelectric projects, in addition to power generation, also provide other benefits (such as flood control, irrigation support and clean drinking water).

India is endowed with a huge hydroelectric potential of 1,45,320 MW. Out of this, only about 45,400 MW has been utilized so far.

India has set a target of achieving a cumulative hydroelectric installed capacity of 75 GW by 2030.

Measures taken to boost hydropower sector

  • Declaration of mega hydel power projects with a capacity of more than 25 MW as renewable energy sources.
  • Hydropower Purchase Obligation.
  • Tariff Rationalization Measures to Reduce Hydro Electric Tariffs.

Source – PIB

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