India is mulling reducing tariffs for new hydro-electric power projects. The move seeks to help them compete against cheaper forms of electricity, according to sources. The power ministry has proposed excluding the costs of building infrastructure like roads and bridges from tariffs to make new hydropower projects viable. Federal government and the states where the projects are located, may bear the costs. Owing to tariffs hitting the roof, around 100 gigawatts of electricity potential in India's rivers is lying untapped. Hydropower projects, often located in remote regions, are crucial to stabilise the grid as India looks to add 175 gigawatts of renewable capacity. These plants can be swiftly turned on and off, helping the grid withstand fluctuations caused by intermittent supplies from solar and wind.
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