Cabinet approves Rs 4,136 crore to harness hydropower potential of North East

NEW DELHI: The government on Wednesday approved a proposal of the Ministry of Power to provide Central Financial Assistance (CFA) to the North Eastern Region (NER) state governments with an outlay of Rs. 4,136 crore for their equity participation in developing hydroelectric projects.

A decision in this regard was taken here at a meeting of the Union Cabinet, chaired by Prime Minister Narendra Modi, Information & Broadcasting Minister Ashwini Vaishnav said, while adding that the projects under the scheme will be executed through Joint Venture (JV) collaborations between state entities and Central Public Sector Undertakings (CPSUs).

The Minister, while briefing media after the meeting of the Union Cabinet, said that the scheme will be implemented during a period from financial year 2024-25 and 2031-32 and it aims to support a cumulative hydro capacity of approximately 15,000 MW.

“It will be funded through 10 per cent Gross Budgetary Support (GBS) for the North Eastern Region, drawn from the Ministry of Power’s total budget. The Ministry’s plan includes forming a JV company for each project between a central PSU and the respective state government,” the Minister said.