Govt's plan to revive hydropower projects in limbo due to lack of funds

The government’s plan to revive stalled hydropower projects through a bailout package of Rs 160 billion is lying in a limbo for a year now. Lack of funds through budgetary support is a major reason for the delay, as the finance ministry asked the ministry of power to rework the scheme.

Last year, the Centre drafted Rs 160 billion package to revive projects with a capacity of nearly 11,000 Mw. This includes 4 per cent interest subvention to projects totalling 11,639 Mw, creating a Hydro Power Development Fund (HPDF).

The proposal mentioned that the fund would be sourced from either