**Executive Summary**
This document summarizes the Government of India's initiatives to promote the development of hydropower potential in Chhattisgarh, Bihar, and North-Eastern States. It details measures, including financial support and regulatory changes, to encourage investment and create employment opportunities. The answer references Gazette Notifications dated August 1, 2025, and September 27, 2025.
**Key Points / Main Content**
* **Hydropower Development Support Measures:**
* Large hydropower projects (capacity above 25 MW) are declared renewable energy sources.
* Budgetary support is provided for enabling infrastructure for Hydro Electric Projects (HEPs) like roads, bridges, and transmission lines.
* Budgetary support extends to Flood Moderation/Storage Hydro Electric Projects.
* Central Financial Assistance (CFA) supports equity participation for Hydro Electric Projects in the North Eastern Region (NER).
* Inter State Transmission System (ISTS) charges are waived for HEPs.
* Capital expenditure limit of hydro generating stations revised to ₹3,000 crore, requiring CEA concurrence, as per the Gazette notification dated August 1, 2025.
* The Renewable Consumption Obligation (RCO) includes hydro energy, as per Gazette Notification dated September 27, 2025.
* **Employment and Investment:**
* Measures aim to promote development through state government participation and increased investment.
* The development of hydroelectric projects ensures local employment and developmental benefits in the project-affected areas.
* Contractual and service-based employment is provided to local people, including Project Affected Families (PAFs).
* Exclusive bidding opportunities are provided to PAFs and local residents.
* Central Power Sector Enterprises (CPSEs) implement developmental activities in project areas.
**Impact Analysis**
* **State Governments of Chhattisgarh, Bihar and North-Eastern States**
* **Impact:** Opportunities to develop hydropower potential in their states through government support.
* **Action Required:** Participation in developing Hydro Electric Projects in partnership with Central Public Sector Undertakings.
* **Project Affected Families (PAFs) and Local Residents**
* **Impact:** Access to contractual and service-based employment, and exclusive bidding opportunities.
* **Action Required:** Participate in employment and bidding opportunities during project construction and operation.
* **Developers of Hydro Electric Projects (HEPs)**
* **Impact:** Financial incentives and regulatory relaxations to promote investment in the sector, subject to CEA concurrence if exceeding revised capital expenditure limits.
* **Action Required:** Utilize available support measures and comply with updated regulations to enhance financial viability.
* **Central Electricity Authority (CEA)**
* **Impact:** Reviewing hydro generating stations with capital expenditure exceeding ₹3,000 crore.
* **Action Required:** Concurrence of HEPs with capital expenditure exceeding revised limit.
* **Central Power Sector Enterprises (CPSEs)**
* **Impact:** Expanded role in implementing developmental activities in project areas.
* **Action Required:** Plan and execute social welfare, education, healthcare, and infrastructure development programs.
Key Entities Referenced
Hydro Electric Projects (HEPs): Projects for the generation of electricity using hydropower.
Central Electricity Authority (CEA): The statutory body with certain regulatory powers over the electric power sector.
Renewable Consumption Obligation (RCO): Requirement to purchase or generate a certain amount of electricity from renewable sources.
North-Eastern Region (NER): A region in India comprising several states, receiving specific financial assistance for hydro-electric projects.
Chhattisgarh, Bihar and North-Eastern States: States in India where the scheme aims to develop hydropower potential
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.- 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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