The Union Cabinet has approved funding of Rs 4,136 crore to aid northeastern states in developing hydropower projects with a capacity of 15,000 MW over the next eight years.

The central assistance will cover up to 24% equity stake in joint ventures, with implementation between FY25-32 under the power ministry’s budgetary support.

With an outlay of Rs. 4,136 crore, the scheme will be implemented from FY 2024-25 to FY 2031-32, supporting a cumulative hydro capacity of approximately 15,000 MW.

The Ministry of Power will fund the scheme through 10% Gross Budgetary Support (GBS) allocated for the region from its total outlay.

According to a notification, a JV company will be established for all projects involving a central PSU and the state government.

The grant towards the equity portion for the Northeast’s state governments will be capped at 24% of the total project equity, with a maximum of Rs. 750 crore per project.

This cap may be adjusted on a case-by-case basis if needed. The equity ratio between the CPSU and the state government in the JV will be maintained when the grant is disbursed.