Marking an important milestone in the revival and expansion of the small hydro power sector in the country, Santosh Kumar Sarangi, Secretary, the Ministry of New and Renewable Energy (MNRE) has launched the Small Hydro Power Development Scheme Guidelines (FY 2026-27 to FY 2030-31)
The newly launched Scheme aims to support installation of approximately 1,500 MW of new small hydro power capacity. With a total financial outlay of ₹2,584.60 crore, the Scheme provides Central Financial Assistance (CFA) for small hydro power projects, support for preparation of Detailed Project Reports (DPR), assistance to technical institutions, and support for capacity building, awareness generation, international cooperation and project monitoring activities.
Sarangi stated that India’s clean energy transition requires diversification of renewable energy sources and greater focus on region-specific solutions. He emphasised that small hydro power is a mature, reliable and environmentally sustainable renewable energy technology that can play a crucial role in strengthening energy security, supporting rural development and promoting balanced regional growth.
He noted that despite an estimated small hydro power potential of around 21 GW in the country, only a fraction has been harnessed so far, presenting a significant opportunity for future development.
Secretary further stressed the importance of close collaboration among central and state governments, developers, financial institutions, technical organisations and local communities. He encouraged states to proactively identify viable project sites, facilitate statutory clearances and create an enabling ecosystem for accelerated project implementation. He added that the national online small hydro power portal will be launched shortly.
