Union Cabinet approves Rs 25.84 billion Small Hydro Power scheme

The union cabinet has approved the Small Hydro Power Development Scheme for FY 2026-27 to FY 2030-31, with an outlay of over Rs 25.84 billion. The scheme aims to install around 1,500 MW of small-hydro power capacity during the period. It aims to promote the development of small-hydro projects ranging from 1 MW to 25 MW across various states. It places special emphasis on hilly and north-eastern regions, which have significant potential for such projects. In the north-eastern states and border districts, central financial assistance of up to Rs 36 million per MW or 30 per cent of the project cost (whichever is lower) will be provided, subject to a maximum of Rs 300 million per project. In other states, support of up to Rs 24 million per MW or 20 per cent of the project cost will be available, capped at Rs 200 million per project. Moreover, a total of Rs 25.32 billion has been allocated for these projects.