Ministry of Power revises approval norms for large hydropower projects

The latest notification revises the capex limit for hydropower projects that require a concurrence from the Central Electricity Authority (CEA) to above ₹ 3,000 crore.

The Ministry of Power has revised the concurrence requirement for hydroelectric projects under the Electricity Act, 2003, requiring approval from the Central Electricity Authority for projects larger than a certain size, while offering exemptions for specific categories like closed-loop pumped storage. Here’s what’s new:

The latest notification revises the capex limit for hydropower projects that require a concurrence from the Central Electricity Authority (CEA) to above ₹ 3,000 crore. A notable exemption for off-stream closed-loop pumped storage schemes: these projects, regardless of cost, no longer require CEA concurrence, though developers may still obtain technical guidance from the CEA voluntarily. Offstream closed-loop pumped storage projects are specifically excluded from this concurrence requirement, even if their capital expenditure is significant.

The ministry also emphasised adherence to the National Dam Safety Act, 2021, remains mandatory for all hydro developers.