The Union Cabinet on 28 August, 2024 has approved central financial assistance to the North-eastern states towards their equity support for development of 15 GW capacity of hydro electric projects. The scheme has an outlay of Rs 4,136 crore and will be implemented from FY25 to FY32.

The scheme is expected to bring investment in the region and provide direct employment to the local populace, while encouraging many entrepreneurial opportunities. The projects will be developed through a joint venture collaboration between state entities and central public sector undertakings (CPSUs). The grant towards the equity portion of the state governments would be capped at 24 percent of the total project equity subject to a maximum of Rs 750 crore per project.

Moreover, the hydroelectric projects will contribute towards India’s Nationally Determined Contribution (INDC) of 500 GW renewable energy capacity by 2030, and would help integration of renewable energy sources in the grid, enhancing flexibility, and reliability of the national grid.