Govt launches SHP scheme guidelines to accelerate small hydro power development across India
New Delhi, June 9
The government on Tuesday launched the guidelines for the Small Hydro Power Development Scheme for the period FY 2026-27 to FY 2030-31, aiming to accelerate the development of small hydro projects across the country and tap India's vast untapped hydropower potential.
The guidelines were unveiled during a national workshop organised by the Ministry of New and Renewable Energy.
The event brought together representatives from state governments, public sector undertakings, developers, technical institutions and industry stakeholders associated with the small hydro power sector.
The newly launched scheme seeks to support the installation of around 1,500 MW of new small hydro power capacity and has been allocated a total financial outlay of Rs 2,584.60 crore.
The scheme provides Central Financial Assistance (CFA) for project development, support for preparation of Detailed Project Reports (DPRs), assistance to technical institutions and funding for capacity building, awareness programmes, international cooperation and project monitoring.
Addressing the gathering, Santosh Kumar Sarangi, Secretary, MNRE said India's clean energy transition requires diversification of renewable energy sources and greater focus on region-specific solutions.
He described small hydro power as a mature, reliable and environmentally sustainable technology that can strengthen energy security, promote rural development and support balanced regional growth.
He noted that India has an estimated small hydro power potential of about 21 GW, but only a limited portion has been harnessed so far, leaving substantial scope for future development.
He urged states to proactively identify viable project sites, facilitate statutory clearances and create an enabling environment for faster implementation of projects.
Earlier, MNRE Joint Secretary Rajesh Kulhari highlighted the importance of the new scheme in unlocking untapped hydro resources, particularly in hilly, remote and border regions.
He said small hydro power can play a significant role in improving energy access, supporting local economic development and enhancing grid stability.
Akash Tripathi, Managing Director of Solar Energy Corporation of India Limited, underscored the role of small hydro power in India's renewable energy transition and stressed the need for close coordination among implementing agencies, developers and state governments.
He reiterated SECI's commitment to efficient implementation of the scheme as its National Programme Implementing Agency.
— IANS
Reader Comments
Good initiative but 2,584 crore for just 1,500 MW? That's roughly 1.7 crore per MW - seems a bit steep. Hope there's proper transparency in how this Central Financial Assistance is utilized. Also, states need to fast-track clearances or this will remain on paper like many other schemes. Constructive criticism but genuine hope it works!
Small hydro is the unsung hero of renewable energy. Unlike solar which only works during day, and wind which is erratic, hydro gives consistent baseload power. Perfect for those border regions like Ladakh, Arunachal, and Sikkim where grid connectivity is weak. But please involve local panchayats and give them a stake in the revenue!
This is exactly the kind of decentralized energy solution India needs. But I'm skeptical about "capacity building and awareness programmes" - that's often where money gets siphoned off. Let SECI and MNRE focus on actual project implementation rather than workshops. Also, why not make it easier for small entrepreneurs to set up micro-hydro plants on their own streams?
Living in a hilly area, I've seen how small hydro projects can transform remote villages - providing electricity for schools, hospitals, and small businesses. But the maintenance is key! Many projects fail after 2-3 years because local technicians aren't trained. Hope this scheme includes proper O&M training for locals. Also, benefit sharing with local communities should be mandatory.
21 GW potential but only small portion tapped - classic Indian story of policy paralysis! Hope this scheme breaks the logjam. But I worry about bureaucratic
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