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News: The Union Cabinet approved the Small Hydro Power Development Scheme for 2026-27 to 2030-31 with ₹2,584.60 crore outlay.
About Small Hydro Power Development Scheme
- It is a scheme to install about 1,500 MW small hydro power capacity across India.
- Nodal Ministry: It is under the Ministry of New and Renewable Energy (MNRE), unlike larger projects under the Ministry of Power.
- Total Outlay: The total financial outlay of the scheme is ₹2,584.60 crore.
- Capacity Range: Supports Small Hydro Power projects with capacities between 1 MW and 25 MW.
- Duration: The scheme will be implemented from FY 2026-27 to FY 2030-31.
- Central Financial Assistance (CFA)
- North East & Border Incentives: Assistance of ₹3.6 crore per MW or 30% of project cost, capped at ₹30 crore per project.
- General State Support: Assistance of ₹2.4 crore per MW or 20% of project cost, capped at ₹20 crore per project.
- Key features
- DPR Pipeline: Allocation of ₹30 crore to support government agencies in preparing Detailed Project Reports (DPRs) for about 200 future projects.
- Employment Generation: Expected to create 51 lakh person-days of employment during construction, plus long-term roles in operations and maintenance.
- Indigenous sourcing: Mandates 100% sourcing of plant and machinery from domestic manufacturers to boost the local industrial base.
- Significance: The scheme promotes clean, stable, and decentralised energy while supporting rural development, reducing transmission losses, and boosting employment in remote regions.
