The Union Cabinet has approved the Memorandum of Understanding (MoU) between India and France on technical bilateral cooperation in the field of new and renewable energy.   India and France aim to establish the basis for a cooperative institutional relationship to encourage and promote technical bilateral cooperation on new and renewable issues on the basis of mutual benefit, equality and reciprocity.

In order to boost hydro power generation, the government has approved a slew of measures including providing renewable energy status for large hydel projects and new funding provisions. With the government's decision, hydro projects above 25 MW will be considered as renewables and eligible for various incentives like financial assistance and cheaper credit (as per existing practice, only hydropower projects less than 25MW are categorized as Renewable Energy).