The Union Cabinet on September 11 approved a proposal to modify the scheme of budgetary support for the cost of enabling infrastructure for Hydro Electric Projects (HEP) with a total outlay of Rs 12,461 crore, to be implemented from FY 2024-25 to FY 2031-32.

For the faster development of Hydro Electric Projects and improvement of infrastructure in the remote project locations, the modifications will now include costs to build "Enabling infrastructure" such as roads/ bridges, transmission lines, ropeways, railway sidings and communication infrastructure, according to a government statement.

The scheme's total outlay is for cumulative generation capacity of about 31,350 MW to be implemented from FY 2024-25 to FY 2031-32, and will be applicable to all Hydro Power Projects of more than 25 MW capacity including the private sector projects which have been allotted on a transparent basis. This will also be applicable to all Pumped Storage Projects (PSPs) including Captive/Merchant PSPs, provided that the project has been allotted on a transparent basis. A cumulative PSP capacity of about 15,000 MW would be supported under the scheme, the government said.

"This revised scheme would help in faster development of hydro electric projects, improve infrastructure in the remote and hilly project locations and would provide large number of direct employment to the local people along with indirect employment / entrepreneurial opportunities through transportation, tourism, small-scale business. It would encourage fresh investments into hydro power sector and incentivize timely completion of new projects," it added.