The Ministry of New and Renewable Energy (MNRE) has approved the Small Hydro Power (SHP) Development Scheme for FY2026-27 to FY2030-31 with a total outlay of 2,584.6 crore. The scheme aims to support the installation of approximately 1,500 MW of new small hydro capacity across India over the next five years.
Small hydropower projects with capacities ranging from 1 MW to 25 MW will be eligible for support under the programme. Around 2,532.6 crore has been earmarked as Central Financial Assistance (CFA) for project developers. Additional funding has been allocated for DPR preparation, technical institutions, capacity building and project monitoring.
The government has appointed the Solar Energy Corporation of India (SECI) as the National Programme Implementing Agency (NPIA) for the scheme. Projects in North-Eastern states and districts with international borders will receive higher financial support of up to 30 percent of project cost, reflecting the government’s focus on energy access and infrastructure development in strategic regions. The scheme seeks to support the preparation of at least 200 Detailed Project Reports (DPR) to create a future pipeline of hydro projects. MNRE estimates the programme will create approximately 9,000 permanent jobs and generate around 51 lakh person-days of employment during the construction phase. Once commissioned, the targeted capacity addition could help avoid nearly 4.3 million tonnes of carbon dioxide emissions annually, supporting India’s climate and clean-energy goals.
