Later in a statement the government said, “The grant towards equity portion of the State Government of NER would be capped at 24 percent of the total project equity subject to a maximum of Rs.750 crore per project. The cap of Rs.750 crore for each project would be revisited, if required, on a case-to-case basis. The ratio of equity of the CPSU and the State Government in the JV would be maintained at the time of disbursing of the grant.”The approved scheme aims to encourage state governments’ participation in hydro development, allowing for a more equitable sharing of risks and responsibilities.“By involving state governments as stakeholders, issues related to land acquisition, rehabilitation, resettlement, and local law and order are expected to be minimised, thereby reducing the chances of project delays and cost overruns,” it said.The scheme is expected to play a crucial role in harnessing the hydropower potential of the North East, attracting significant investment to the region, and generating substantial direct and indirect employment opportunities, including in sectors like transportation, tourism, and small-scale businesses.It is to be noted here that on March 7, 2019, the Union Cabinet had approved measures to promote the hydropower sector, such as classifying large hydro projects as renewable energy sources, introducing Hydro Power Purchase Obligations (HPOs), rationalising tariffs through escalation, and providing budgetary support for flood moderation and the construction of enabling infrastructure like roads and bridges.
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