For the fiscal years 2026–27 through 2030–31, the Small Hydro Power Development Scheme has been authorised by the Ministry of New and Renewable Energy (MNRE). The plan is to expedite the transition to renewable energy in India and enhance energy security by installing about 1,500 MW of new small hydro power capacity with a total investment assistance of ₹2,584.60 crore.
To further diversify India’s energy sources and make use of its latent hydropower potential, the government unveiled on Tuesday the rules for the Small Hydro Power (SHP) Development Scheme, which will run from fiscal years 2026–27 to 2030–31.
State governments, public sector undertakings, project developers, technical institutions, and industry stakeholders from the small hydro power sector were present at a national workshop organised by the Ministry of New and Renewable Energy (MNRE) to unveil the guidelines.
Around 1,500 MW of additional small hydro generating capacity will be installed across the nation under the recently announced program. The overall budget for the initiative is 2,584.60 crore rupees.
Project planning and execution are both supported by the program’s Central Financial Assistance (CFA). Detailed Project Reports (DPRs) are also a part of this, as are initiatives to help technical institutions, programs to raise awareness, international cooperation, capacity-building, and project monitoring.
Santosh Kumar Sarangi, Secretary, MNRE, spoke at the session and stressed the need of a diverse mix of renewable energy sources and solutions tailored to each region in India’s clean energy transition. He said that small hydro power is an established, dependable, and ecologically friendly technology that can improve energy security, boost rural development, and guarantee balanced regional growth.
According to Sarangi, a large chunk of India’s 21 GW of small hydro power potential is still unrealised. Identifying feasible project locations, expediting statutory clearances, and creating a supportive ecosystem for faster project implementation were his utmost priorities, and he pushed governments and stakeholders to do just that.
The initiative has the ability to release hydro resources in mountainous, isolated, and border regions, according to Rajesh Kulhari, Joint Secretary, MNRE, who spoke at the event. Small hydro projects, he said, may boost local economies, provide access to energy, and help keep the system stable.
At the same time, SECI Managing Director Akash Tripathi stressed again how crucial small hydro power is to India’s shift to renewable energy. To guarantee the scheme’s proper execution, he stressed the importance of tight cooperation among developers, implementing agencies, and state governments.
To help the program run smoothly and contribute to the country’s clean energy goals in the long run, SECI has agreed to serve as the National Programme Implementing Agency.
Launching the Small Hydro Power Development Scheme will help India achieve its clean energy targets and speed up the deployment of renewable energy in underserved and far-flung areas. Unlocking the country’s significant small hydro power potential and strengthening sustainable energy infrastructure are the goals of the project, which has received substantial financial support and has a clear implementation framework.
Image: ET
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