Lok Sabha Question No. 3071 (UNSTARRED), answered on 2025-12-18
Subject: Development of Hydropower Potential
Ministry: POWER
Asked by: Shri Dilip Saikia, Smt. Kamlesh Jangde, Smt. Vijaylakshmi Devi

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.3071 ANSWERED ON 18.12.2025

## DEVELOPMENT OF HYDROPOWER POTENTIAL

†3071. SHRI DILIP SAIKIA: SMT. KAMLESH JANGDE: SMT. VIJAYLAKSHMI DEVI:

Will the Minister of POWER be pleased to state:

- (a) whether the Government has launched any scheme to support the development of hydropower potential in Chhattisgarh, Bihar and North-Eastern States;
- (b) if so, the details thereof; and
- (c)  whether  the  said  scheme  is  likely  to  facilitate  investment  and  create  significant direct employment opportunities for local people and if so, the details thereof?

## A N S W E R

## THE MINISTER OF STATE IN THE MINISTRY OF POWER

(SHRI SHRIPAD NAIK)

(a) & (b) : The Government has taken various measures to support the development of hydropower potential in the country including Chhattisgarh, Bihar and North-Eastern States; viz:

- i. Declaring large hydropower projects (capacity above 25 MW) as renewable energy source.
- ii. Budgetary  support  towards  cost  of  enabling  infrastructure  for  Hydro  Electric Projects  (HEPs),  i.e.  roads,  bridges,  ropeways,  railway  siding,  communication infrastructure and transmission line from power house to the nearest pooling point, including  upgradation  of  pooling  substations  of  State  or  Central  Transmission Utility.
- iii. Budgetary Support towards Flood Moderation/Storage Hydro Electric Projects.
- iv. Central  Financial  Assistance  (CFA)  to  the  State  Governments  of  North  Eastern Region (NER) towards their equity participation for development of Hydro Electric Projects in the NER through Joint Venture between State entities and Central Public Sector Undertakings.
- v. Waiver of Inter State Transmission System (ISTS) charges for HEPs.

……..2.

- vi. The Government of India, vide Gazette notification dated 01.08.2025, has revised the capital expenditure limit of hydro generating stations to ₹3,000 crore, requiring the concurrence of the Central Electricity Authority (CEA). However, developers may seek technical guidance from the CEA for HEPs under exempted category.
- vii. Vide Gazette Notification dated 27.09.2025, the Central Government has specified the Renewable Consumption Obligation (RCO) which also includes hydro energy.

(c) The above measures are envisaged to promote the development of hydroelectric projects through participation of state governments and facilitate increased investment in the hydro sector due to their enhanced financial viability.

The  development  of  hydroelectric  projects  ensures  local  employment  and developmental benefits  in  the  project-affected  areas.  Contractual  and  service-based employment to local people, including Project Affected Families (PAFs) during project construction and operation phases generate livelihood and improved living standards of the  local  communities.  Further,  exclusive  bidding  opportunities  are  also  provided  to PAFs  and  local  residents  to  promote  entrepreneurship  and  sustained  livelihood generation. In addition, Central Power Sector Enterprises (CPSEs) implement a wide range  of  developmental  activities  mainly  in  project  areas  covering  social  welfare, education,  healthcare,  infrastructure  development,  skill  development  and  livelihood enhancement.

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