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News: The government has approved ₹12,461 crore support for 31,350 MW of Hydro power projects. This support is applicable to all hydro projects including pump storage, above 25MW capacity. The support for projects upto 200MW will be of 1 crore/MW and for Projects above 200MW will be of 75 lakhs /MW.
Views: This will create strong opportunities for EPC players like Patel Engineering. Patel’s order book of ₹17,900 crore as of Q1FY25 comprises 61% of hydro power projects. The management had indicated it plans to bid for nearly ₹50000 crore worth of projects, expecting to secure ₹10000-12000 crore in new orders within the next year banking on immediate opportunities in the hydro power space.
Impact: Positive