The government has introduced guidelines for the Small Hydro Power (SHP) Development Scheme for the period FY 2026-27 to FY 2030-31. This initiative aims to boost the development of small hydro projects nationwide and harness India’s significant untapped hydropower potential. The guidelines were revealed at a national workshop organized by the Ministry of New and Renewable Energy.
The scheme is designed to facilitate the installation of approximately 1,500 MW of new small hydro power capacity. It has been allocated a total financial outlay of Rs 2,584.60 crore. The scheme offers Central Financial Assistance (CFA) for project development, support for the preparation of Detailed Project Reports (DPRs), assistance to technical institutions, and funding for various activities like capacity building, awareness programs, international cooperation, and project monitoring.
Santosh Kumar Sarangi, Secretary of MNRE, emphasized the need for diversifying renewable energy sources and focusing on region-specific solutions for India’s clean energy transition. He highlighted small hydro power as a reliable and environmentally sustainable technology that can enhance energy security, promote rural development, and support balanced regional growth. India possesses an estimated small hydro power potential of around 21 GW, indicating significant room for future development.
