MNRE Launches Guidelines for Small Hydro Power Development Scheme to Add 1,500 MW Capacity

The Ministry of New and Renewable Energy (MNRE) has launched the guidelines for the Small Hydro Power (SHP) Development Scheme for FY 2026-27 to FY 2030-31 during a national workshop held with participation from state governments, industry stakeholders, developers, public sector undertakings, technical institutions, and industry associations.

The newly launched scheme aims to support the installation of approximately 1,500 MW of new Small Hydro Power capacity across the country. Backed by a total financial outlay of ₹2,584.60 crore, the programme provides Central Financial Assistance (CFA) for SHP projects, support for Detailed Project Reports (DPRs), assistance to technical institutions, and funding for capacity building, awareness initiatives, international cooperation, and project monitoring activities.

The guidelines were formally launched by Shri Santosh Kumar Sarangi, Secretary, Ministry of New and Renewable Energy, marking a significant milestone in the government’s efforts to revive and expand the small hydro sector. Addressing the gathering, Sarangi highlighted the importance of diversifying renewable energy sources and noted that Small Hydro Power remains a mature, reliable, and environmentally sustainable technology capable of strengthening energy security and promoting balanced regional development.

He emphasized that India possesses an estimated Small Hydro Power potential of around 21 GW, of which only a limited portion has been harnessed so far. According to him, the untapped potential presents a significant opportunity to support rural development, improve energy access, and accelerate clean energy deployment, particularly in hilly, remote, and border regions.

Shri Rajesh Kulhari, Joint Secretary, MNRE, underscored the role of the new scheme in unlocking the country’s hydro potential and called for active participation from states and stakeholders to ensure timely implementation of projects. He also reiterated the ministry’s commitment to accelerating Small Hydro Power development across the country.

Speaking at the workshop, Shri Akash Tripathi, Managing Director of Solar Energy Corporation of India Limited, highlighted the contribution of Small Hydro Power to India’s clean energy transition and renewable energy diversification. As the designated National Programme Implementing Agency (NPIA), SECI reaffirmed its commitment to facilitating efficient implementation of projects under the scheme.

During the technical sessions, SECI officials presented the key features of the guidelines, including eligibility criteria, financial assistance mechanisms, implementation timelines, and institutional arrangements. Stakeholders were also briefed on provisions aimed at improving project viability and reducing tariffs, particularly in hilly and North-Eastern regions.

Officials from the National Informatics Centre (NIC) and MNRE demonstrated the upcoming National Online SHP Portal, which will serve as the digital platform for scheme implementation. The portal will facilitate project registration, application processing, document submission, monitoring, fund disbursement, and grievance redressal, enabling transparent and real-time project management.

The workshop concluded with an interactive discussion involving state representatives, developers, and industry stakeholders, focusing on project allotment, approvals, financial assistance, and implementation challenges. Participants expressed a shared commitment to leveraging the opportunities offered under the new scheme to accelerate the growth of Small Hydro Power as part of India’s broader renewable energy transition.