
The Indian government has updated its plan to support Hydro Electric Projects (HEPs). These changes aim to speed up the development of hydropower and improve infrastructure in remote and hilly areas.
Background
In 2019, the government started a program to help fund essential infrastructure for hydropower projects, like roads and bridges. This made it easier to connect dams and power stations to main highways.
What’s New in the Updated Scheme
1. More Funding
- Total Budget: ₹12,461 crore allocated.
- Project Capacity Supported: About 31,350 MW of power generation.
2. Longer Time Frame
- Implementation Period: From the financial year 2024-25 to 2031-32.
3. Expanded Infrastructure Support
- Transmission Lines: To carry electricity from remote projects.
- Ropeways: Useful in areas where building roads is difficult.
- Railway Sidings: For easier transport of heavy equipment.
- Communication Networks: To improve connectivity and operations.
4. Wider Eligibility
- Hydro Projects Over 25 MW: All such projects, including those by private companies, qualify.
- Pumped Storage Projects (PSPs): All PSPs are included.
Other Measures to Boost Hydropower
- Renewable Energy Status: Large hydropower projects (over 25 MW) are now considered renewable energy sources.
- Hydro Power Purchase Obligations (HPOs): Power distributors are required to buy a certain amount of electricity from hydropower projects.
- Lowering Tariffs: Steps are being taken to reduce the cost of hydropower for consumers.
- Support for Flood Control Projects: Funding is provided for projects that help manage floods and store water.
Why Is This Important?
These updates are significant because they:
- Promote Clean Energy: Hydropower is renewable and helps reduce pollution.
- Boost Remote Areas: Improved infrastructure can lead to economic growth in distant regions.
- Enhance Energy Security: More hydropower means less reliance on non-renewable sources.
An Easy Way to Understand It
Think of India’s energy system like a network of rivers:
- Main River: Represents the primary energy supply.
- Tributaries: Smaller energy sources feeding into the main supply.
- Dams and Channels: Infrastructure improvements that control and direct the flow efficiently.
By enhancing the dams and channels (infrastructure), we ensure a steady and controlled flow of water (energy) to where it’s needed most.
Interesting Facts
- Hydropower Potential: India can generate about 145,000 MW from hydropower but currently uses only around 30% of this potential.
- Pumped Storage: These projects store excess energy and release it when demand is high, like giant batteries.
- The government’s updates show a strong commitment to renewable energy and sustainable development. By investing in hydropower, India is taking steps toward a cleaner, greener future.

