Govt showers Rs 16,000-crore bailout to hydropower sector

Package includes 4% interest subvention, low tariff and power-purchase obligation for states

The Centre has decided to provide a Rs 16,000-crore bailout package to the hydropower sector, drowning under a spate of stalled and stressed projects. This is the first package for the power sector provided by the current government.

This package includes a 4 per cent interest subvention to projects with total capacity of 11,639 Mw and the creation of a Hydro Power Development Fund.

The fund would be financed with either coal cess, or from the National Clean Energy Fund or the pool for the Development of North Eastern Region (DONER). This would be granted to under-construction and stalled hydropower