Exciting Boost: Centre Approves Whopping Rs 4,136 Cr for Game-Changing Hydro Electric Projects in Northeast

The Central Government has announced a capped grant of 24% of the total project equity, subject to a maximum of Rs. 750 crore per project, towards the equity portion of the State Government in the North Eastern Region (NER). This cap of Rs. 750 crore will be revisited on a case-to-case basis if required. The equity ratio between the Central Public Sector Undertaking (CPSU) and the State Government in the joint venture must be maintained at the time of grant disbursement. The Central Financial Assistance will be available only to viable hydroelectric projects. To ensure project viability, States are required to waive or stagger free power or reimburse the State Goods and Services Tax (SGST).

This scheme aims to encourage State Government participation in hydro development, ensuring a more equitable sharing of risks and responsibilities. By involving State Governments as stakeholders, issues such as land acquisition, rehabilitation, resettlement, and local law and order are expected to be mitigated. This collaborative approach is anticipated to prevent time and cost overruns in the implementation of the projects.

Original Story https://www.pratidintime.com/national/centre-approves-rs-4136-cr-for-hydro-electric-projects-in-northeast
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