economy

Kerala seeks central funding, faster nod for hydro and storage projects

Published on: 12 Aug 2026, 01:29 PM

Kerala has urged the Union government to provide financial support and expedite environmental and forest clearances for hydroelectric, pumped storage, and battery energy storage projects in the state. The requests were made during meetings between Kerala Electricity Minister Sunny Joseph and Union Power Minister Manohar Lal Khattar and Union New and Renewable Energy Minister Pralhad Joshi in New Delhi on Tuesday.

The state government sought viability gap funding (VGF) for hydropower projects, battery energy storage systems (BESS), and pumped storage projects (PSPs). VGF is a mechanism through which the government provides capital support to make infrastructure projects financially viable, particularly in the initial years when revenue streams may not cover costs.

Kerala also requested relaxations in conditions for implementing hydro and PSP schemes in villages designated as ecologically sensitive areas (ESA) of the Western Ghats. The state asked for these projects' environmental and forest clearances to be fast-tracked. The Western Ghats, a UNESCO World Heritage site, is a biodiversity hotspot. The ESA notification imposes restrictions on developmental activities to protect the region's ecology. Kerala's request is to ease specific conditions to permit clean energy infrastructure while maintaining environmental safeguards.

On the supply side, Kerala sought an extension of 262 MW of power from plants in the southern region until June 2028. The state also asked for additional allocations from the unallocated and surplus power of central generating stations. This is aimed at meeting the state's growing electricity demand while stable renewable capacity is being expanded.

In addition, the state requested the Centre to speed up BESS projects being implemented through NTPC Ltd, the central public sector enterprise. The Kerala State Electricity Board (KSEB) has projects under way or as active proposals in all three categories — hydro projects, BESS, and PSPs.

Minister Joseph stated that these measures are part of the state government's efforts to improve power sector infrastructure and ensure long-term energy security. Pumped storage and battery storage are considered critical for managing the intermittency of solar and wind power, while hydro projects contribute to meeting peak power demand. The central government's response will determine the pace of these projects and the state's ability to integrate renewable energy reliably.

Kerala's requests reflect a broader push by several states to leverage clean energy while dealing with challenges such as ecological regulations and financing gaps. The Centre's decisions will likely balance development needs with environmental concerns, setting a precedent for other states with similar proposals.

Source: The Hindu

Latest in Economy 10

economy

Rupee gains 44 paise to 94.92 as RBI steps in to curb dollar demand

The rupee appreciated 44 paise to 94.92 against the U.S. dollar in early trade on Wednesday, helped by RBI measures to reduce near-term dollar demand and curb speculation. The currency has now gained for three consecutive sessions, though traders expect external pressures to limit further gains. Domestic equities opened marginally lower.

The Hindu 14 Oct 2026, 05:00 AM

economy

Sitharaman Says She Will 'Keenly Hear' Views on LTCG and STT as Markets Rise 1%

Finance Minister Nirmala Sitharaman said she would keenly hear views on the long-term capital gains tax and the securities transaction tax, without confirming whether either would be considered in the Budget 2027 preparations. She also said the RBI would continue acting to curb rupee volatility rather than fix its level, shortly after which the stock market rose about 1%.

The Hindu 13 Oct 2026, 01:44 PM

economy

Chennai Dominates Tamil Nadu's Residential Market with 51.5% of Launches: Report

A report by JLL released at CREDAI Tamil Nadu's STATECON 2026 reveals that Chennai accounts for 51.5% of the state's residential launches, while plotted developments dominate secondary growth corridors. The conference discussed strategies to support Tamil Nadu's ambition of becoming a $1.5-trillion economy by 2036, including regulatory reforms and affordable housing.

The Hindu 11 Oct 2026, 01:52 PM

economy

Tomato prices rise in Andhra Pradesh as Madanapalle arrivals fall ahead of festive season

Tomato prices in Andhra Pradesh's Rayalaseema districts have risen after arrivals at the Madanapalle market yard fell to 62 tonnes on Wednesday from 88 tonnes a day earlier, with first-grade produce quoted at ₹410 per 10 kg. Retail prices are ruling at ₹45 to ₹50 a kg in Madanapalle, Kadapa, Tirupati and Kurnool. Traders expect prices to stay firm through the Dasara, Diwali and Ayyappa Deeksha season unless arrivals improve, while farmers say retail rates do not fully reach them after costs.

The Hindu 01 Oct 2026, 03:30 AM

economy

CAG flags 12,393 acres of Odisha industrial land lying unutilised, encroachments unchecked

A CAG report tabled in the Odisha Assembly has found that 12,393.651 acres of land allotted for industry between 1981 and 2021 were never used for their sanctioned purpose, with a further 252.692 acres diverted. The audit also flagged 668.893 acres of government land worth ₹597.87 crore under unauthorised occupation, including 10 acres of Bhubaneswar forestland held by the Kalinga Institute of Social Sciences despite a pending case.

The Hindu 29 Sep 2026, 01:48 PM

economy

Rupee slips 11 paise to 95.84 as crude oil holds above $100 amid West Asia uncertainty

The rupee fell 11 paise to 95.84 against the U.S. dollar in early trade on Thursday, pressured by a stronger dollar, firm U.S. bond yields and crude oil prices holding above $100 a barrel amid stalled West Asia diplomacy. Domestic equities also declined, with the Sensex down 506 points, though foreign investors remained net buyers of Indian shares on Wednesday.

The Hindu 24 Sep 2026, 05:10 AM

economy

Spinning mills urge Centre to scrap 11% cotton import duty permanently

The Southern India Mills' Association has renewed its demand for the permanent removal of the 11 per cent import duty on cotton, saying the levy fuels price volatility across the textile value chain. SIMA chairman Durai Palaniswamy also sought curbs on speculation and a review of the Cotton Corporation of India's pricing policy, while the association announced its office bearers for 2026-27.

The Hindu 22 Sep 2026, 01:50 PM

economy

Chennai Port's ₹73.91-Crore EXIM Godowns Ready: Three Open, Fourth Nearly Done

Three of the four new EXIM godowns at Chennai Port have been completed and leased out, and are already storing rice and steel coils. The ₹73.91-crore project, delayed by supply disruptions linked to the West Asia crisis, will be fully ready once the fourth warehouse is finished.

The Hindu 21 Sep 2026, 01:54 PM

economy

Over 3,670 MSMEs Tap Into PSU Supply Chains as Tamil Nadu Expands Vendor Outreach

Tamil Nadu has held 13 vendor development programmes to connect MSMEs with public sector undertakings, with more than 3,670 small firms benefiting so far, MSME Minister P. Mathan Raja said in Thoothukudi. He cited a ₹2,141 crore budget allocation for MSMEs this year and a ₹600 crore capital subsidy scheme, and said the State's $1.5 trillion economy target for 2036 depends on large industry and small firms working together.

The Hindu 18 Sep 2026, 01:49 PM

economy

State revenue receipts lag at 32% of annual Budget estimate after five months

The State’s revenue receipts reached only 32.14% of the annual Budget estimate at the end of August, with non-tax revenue and grants lagging significantly. Tax collections were relatively better but several heads remained below 40% of their targets. Pensions and interest payments continued to dominate expenditure, while the revenue deficit stood at ₹14,840 crore.

The Hindu 18 Sep 2026, 01:54 PM

→ View All Economy News