As hydro power becomes uncompetitive, India looks for ways to lower tariffs

Nearly 100 gigawatts of electricity potential in India's rivers is lying untapped because of high tariffs

India is considering lowering tariffs for new hydro-electric power projects to help them compete against cheaper forms of electricity, according to people with knowledge of the matter.

The federal power ministry has proposed excluding the costs of building infrastructure such as roads and bridges from tariffs to make new hydropower projects viable, the people said asking not to be named as the discussions are not public yet. Those costs might be borne by the federal government and the states where the projects are located, the people said, adding that the details haven’t been finalized.

Power ministry spokesman Rajesh Malhotra declined to comment.