(1) Notwithstanding anything contained in section 7, any generating company intending to set-up a hydro-generating station shall prepare and submit to the Authority for its concurrence, a scheme estimated to involve a capital expenditure exceeding such sum, as may be fixed by the Central Government, from time to time, by notification.
(2) The Authority shall, before giving its concurrence in respect of hydro-generating stations under sub-section (1), consider in particular whether the proposed scheme is viable and will subserve the optimal development of the river basin.
Legal Commentary & Landmark Judgments: Section 8
Section 8 of the Electricity Act, 2003 mandates that any person proposing to establish a hydro-electric generating station exceeding a capital expenditure threshold notified by the Central Government must submit the project scheme to the Central Electricity Authority (CEA) for prior technical, hydrological, and financial concurrence.
In hydro-power project financing, EPC contract structuring, and tariff petitions, ensure that any subsequent scope changes or capital expenditure escalations receive formal supplementary concurrence from the CEA under Section 8 to insulate project costs from disallowance during regulatory prudency audits.