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RAS question

Under the SHP scheme, what is the maximum CFA cap per project for states other than NE/border districts?

Correct answer: (C) ₹20 crore.

Under the Small Hydro Power Development Scheme, states other than North Eastern states and international border districts get central financial assistance capped at Rs.20 crore per project.

  1. (A)

    ₹10 crore

  2. (B)

    ₹15 crore

  3. (C)

    ₹20 crore

  4. (D)

    ₹30 crore

Explanation

The cap is Rs.20 crore per project for states outside the North Eastern states and international border districts. The PIB release says that, for these other states, central financial assistance is calculated at Rs.2.4 crore per MW or 20% of the project cost, whichever is lower, with the per-project ceiling fixed at Rs.20 crore. That is why option C matches the scheme rule exactly: it is not just a rate per MW, but the maximum amount a project in the ordinary-state category can receive. The separate Rs.30 crore ceiling belongs to the higher-support category of North Eastern states and districts with international borders.

Why the other options are wrong

  • (A) Rs.10 crore is below the stated ceiling and is not the CFA cap given for other states in the SHP scheme.
  • (B) Rs.15 crore does not match the PIB-stated cap, which is Rs.20 crore per project for other states.
  • (D) Rs.30 crore is the upper limit for North Eastern states and districts with international borders, not for states outside that category.

Concept

This tests the government-scheme component of Environment and Ecology, especially clean-energy support mechanisms and financial ceilings. Such details recur in RAS because scheme eligibility, rates and caps often decide the exact MCQ answer.

Source

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