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GOVERNMENT OF INDIA
MINISTRY OF NEW AND RENEWABLE ENERGY
LOK SABHA
UNSTARRED QUESTION NO. 2778
ANSWERED ON 05.08.2026
HYDRO POWER POLICY 2008
2778. SH. HANUMAN BENIWAL
Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:
(a) whether there is a provision to supply 13 per cent of the electricity generated from hydropower
projects free of cost to the home/host State concerned under the Hydropower Policy, 2008 and if so,
the details thereof;
(b) whether the Government has considered the possibility of providing 15 per cent or any other
suitable percentage of such electricity free of cost to the States hosting the inter-States wind and solar
energy projects and if so, the details thereof;
(c) the details of the action taken in this regard, the committee constituted, the proposal under
consideration and the time by which such proposal is likely to be implemented;
(d) whether the Government proposes to formulate any new policy taking into account the utilization
of land, natural resources and infrastructure by the host States; and
(e) if so, the time by which it is likely to be formulated and if not, the reasons therefor?
ANSWER
THE MINISTER OF STATE FOR NEW & RENEWABLE ENERGY AND POWER
(SHRI SHRIPAD YESSO NAIK)
(a) As per the Hydropower Policy, 2008 released by Ministry of Power for large hydropower, 12% free
power is to be provided to the Host State Government from a hydropower project. This is supplemented
by an additional 1% free power, which is earmarked for the Local Area Development Fund (LADF)
for providing a regular stream of revenue for income generation and welfare schemes, creation of
additional infrastructure and common facilities, etc.
(b) & (c) At present, there is no such proposal to allocate 15% of the electricity generated in the inter-
state wind and solar power plants to the hosting States, free of cost.
(d) & (e) At present, there is no such proposal under consideration.
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