The Ministry of Power has issued a new notification, that supersedes a previous order from 2006 and introduces new regulations for the establishment of hydro generating stations. The notification, issued in exercise of powers conferred by sub-section (1) of section 8 of the Electricity Act, 2003, states that any scheme for a hydro generating station with an estimated capital expenditure exceeding ₹3,000 crore will require the concurrence of the Central Electricity Authority (CEA).
However, the new order introduces an exemption: upstream closed-loop pumped storage schemes are now exempt from this concurrence requirement, regardless of their capital expenditure. For these exempted schemes, developers may still seek technical guidance from the CEA if they wish.
The notification also mandates that developers of all hydro generating stations must ensure adherence to the provisions of the National Dam Safety Act, 2021. This new rule aims to streamline the approval process for specific, high-potential hydro projects while reinforcing the importance of safety and regulatory compliance.