India injects more budgetary support for hydro electric projects

This will fund the country’s goal to build 15 GW of pumped storage.

The Indian government is expanding its financial support for hydropower as it allocates INR12,461 crore for the sector for the financial years 2024-2025 to 2031-2032.

According to a memorandum issued by the Ministry of Power, the budget will be used to build 31 gigawatts (GW) of hydropower, which includes 15 GW of pumped storage capacity. 

The budgetary support for enabling infrastructure will be capped at INR1 crore per megawatt (MW) for projects up to 200 MW, and INR200 crore plus INR00.75 crore per MW for those above 200 MW. 

The allocation may be increased to INR1.5 crore per MW provided there is enough justification based on objective criteria specified by power officials in consultation with the Ministry of Finance.

Individual projects will receive budgetary support after appraisal of the cost of enabling infrastructure by the Delegated Investment Board or Public Investment Board, and approval of the relevant authority. .