The Union Cabinet has approved the small hydro power development scheme for the period FY 2026-27 to FY 2030-31 with an outlay of Rs 25.85 billion.
The scheme aims to support installation of around 1,500 MW of small hydro power projects with capacities ranging from 1 MW to 25 MW. Under the scheme, projects in north-eastern states and border districts will be eligible for central financial assistance of up to Rs 36 million per MW or 30 per cent of project cost, whichever is lower, subject to a cap of Rs 300 million per project. Projects in other states will receive up to Rs 24 million per MW or 20 per cent of project cost, whichever is lower, subject to a cap of Rs 200 million per project. This will help in tapping the small hydro potential in remote and difficult to reach locations. An amount of Rs 25.32 billion has been earmarked for such projects. The scheme will also support preparation of detailed project reports for around 200 projects, for which Rs 300 million has been allocated to state and central government agencies.