New Delhi: The Ministry of Power has notified that hydroelectric projects above a certain size will now require approval from the Central Electricity Authority (CEA), while providing exemptions for specific categories such as closed-loop pumped storage. The latest notification revises the capex limit for hydropower projects that require a concurrence from the CEA to above Rs 3,000 crore.
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In a Gazette notification issued on August 1, the ministry said, “Schemes for setting up of hydro generating stations, involving an estimated capital expenditure exceeding rupees three thousand crores shall require the concurrence of the Central Electricity Authority.” The cost of developing large hydro projects in the country averages at about Rs 7 crore/MW. Keeping this number in mind, hydro power projects above 428 MW will have to seek an approval from the CEA.
The notification clarified that pumped storage projects designed as closed-loop systems will not need CEA concurrence. It stated, “Provided that offstream closed-loop pumped storage schemes, irrespective of the quantum of capital expenditure, shall be exempted from the requirement of concurrence by the Authority.”
However, it added that developers may still seek advisory support from the CEA, noting, “for the schemes falling under the exempted category, the developer may seek technical guidance from the Authority.”
The ministry also emphasised adherence to safety norms for such projects. “The developer referred to in paragraph (1) shall ensure adherence to the provisions of the National Dam Safety Act, 2021,” the notification stated.
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The new order supersedes an earlier notification from April 18, 2006, except for actions already taken. The ministry said the notification was issued “in exercise of the powers conferred by sub-section (1) of section 8 of the Electricity Act, 2003.”