The Union Cabinet of India has approved the Small Hydro Power (SHP) Development Scheme for the period FY 2026–27 to FY 2030–31, with a total outlay of ₹2584.60 crore. The initiative aims to develop around 1500 MW of small hydro power capacity across India, with a strong focus on clean and decentralized energy.
The scheme targets projects ranging from 1 MW to 25 MW, especially in hilly and remote regions, including the North Eastern states. By utilizing untapped hydro potential, it seeks to enhance renewable energy generation while ensuring minimal environmental impact.
To encourage investment, the government is offering financial assistance—up to ₹3.6 crore per MW in North-East and border areas, and ₹2.4 crore per MW in other states, with project-wise caps. This is expected to attract investments of nearly ₹15,000 crore and strengthen India’s renewable energy sector.
In addition to clean energy, the scheme supports the Atmanirbhar Bharat by promoting indigenous equipment manufacturing. It is also expected to generate significant employment and boost economic development in rural and remote regions.
Overall, the SHP Scheme marks a major step toward sustainable growth, energy security, and inclusive development in India.
