Overview
- The Union Cabinet approved the Small Hydro Power Development Scheme for FY2026–27 to FY2030–31 to support 1–25 MW projects targeting roughly 1,500 MW of new capacity.
- Central aid will be higher in North-Eastern states and border districts at up to ₹3.6 crore per MW or 30% of project cost, capped at ₹30 crore per project, versus up to ₹2.4 crore per MW or 20% with a ₹20 crore cap elsewhere.
- Of the total outlay of about ₹2,584.6 crore, ₹2,532 crore is earmarked for project execution and ₹30 crore will fund DPR preparation for about 200 future projects.
- Officials expect the initiative to mobilize around ₹15,000 crore in investment and create an estimated 51 lakh person-days of construction employment, with additional long-term O&M jobs.
- Projects will use environment-friendly run-of-the-river designs, reduce transmission needs through decentralized supply, and source 100% of plant and machinery domestically under Atmanirbhar Bharat.