The National Democratic Alliance government of India will present legislation to the Cabinet to reclassify hydropower as a clean renewable energy source.
Speaking at a conference to mark the construction of a new Ministry of Mines, Coal, Power, New and Renewable Energy (MNRE) headquarters building in New Delhi on Oct. 19, MNRE Minister, Piyush Goyal, said, “hydropower of all sizes and shapes shall be considered renewable energy.”
The classification change may likely aid hydropower projects currently in financial limbo become eligible for tax incentives. This, according to local news reports, could make investment in hydropower projects become more attractive.
Currently, hydropower in India is categorized as conventional energy and the country’s installed capacity is about 43 GW, according to the MNRE.
MNRE is studying a committee report on hydropower and after the review is completed the ministry will present its recommendation to the Cabinet for approval, Goyal said.
The ministry did not provide a planned date to present its findings to the Cabinet.