Union Cabinet modified the scheme for faster development of Hydro Electric Projects (HEP) and improvement of infrastructure in remote and hilly project locations. 

• Scheme of Budgetary support for cost of enabling infrastructure for HEP was launched by Ministry of Power in 2019, along with other measures to promote hydropower sector in India. 
  • It provided budgetary support for constructing roads and bridges connecting major dam, power house and other project infrastructure with nearest state/national highway. 

Modified Scheme

• Funding: Total outlay of Rs.12,461 crore for cumulative generation capacity of about 31,350 MW.
• Implementation Period: FY 2024-25 to FY 2031-32.
• Expansion: Scheme expanded to include costs for constructing transmission lines, ropeways, railway sidings, and communication infrastructure, in addition to roads and bridges. 
• Eligibility: HEPs >25 MW capacity including private sector projects and all Pumped Storage Projects (PSPs). 

Other Measures for Development of HEP

• Declaring Large Hydro Power projects (> 25 MW projects) as Renewable Energy sources.
• Hydro Power Purchase Obligations (HPOs) requiring entities to purchase electricity from HEPs.
• Tariff rationalization measures for bringing down hydropower tariff
• Budgetary support for flood moderation / Storage HEPs.