Government releases guidelines for ₹2,584 crore Small Hydro Power Development Scheme

Small Hydro Power Development Scheme featured image with hydro facility and key scheme metrics
Small hydro power facility with key scheme metrics.Representative Image (AI-Generated)

The Ministry of New and Renewable Energy (MNRE) has launched guidelines for the Small Hydro Power Development Scheme for FY 2026-27 to FY 2030-31, a scheme with a total financial outlay of ₹2,584.60 crore.

The guidelines were launched during a National Workshop on the Small Hydro Power Development Scheme organised by the ministry on Tuesday, 9 June.

The workshop brought together representatives from State Governments, State Nodal Agencies, public sector undertakings, developers, technical institutions, industry associations and other stakeholders associated with the Small Hydro Power sector.

The scheme aims to support the installation of about 1,500 MW of new small hydro power capacity across India.

According to the ministry, the scheme will provide Central Financial Assistance for small hydro power projects, support for preparation of Detailed Project Reports, assistance to technical institutions, and support for capacity building, awareness generation, international cooperation and project monitoring.

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MNRE Secretary Santosh Kumar Sarangi said India’s clean energy transition requires diversification of renewable energy sources and greater focus on region-specific solutions.

He said small hydro power is a mature and reliable renewable energy technology that can support energy security, rural development and balanced regional growth.

He said India has an estimated small hydro power potential of around 21 GW, but only a fraction of it has been harnessed so far.

Sarangi urged states to identify viable project sites, facilitate statutory clearances and create an enabling ecosystem for faster project implementation.

He added that the National Online SHP portal will be launched shortly.

SECI Managing Director Akash Tripathi said small hydro power can support India’s clean energy transition and strengthen renewable energy diversification.

He said SECI will work as the National Programme Implementing Agency for the scheme.

During the workshop, SECI officials made a presentation on the scheme guidelines, including eligibility criteria, Central Financial Assistance structure, project timelines, implementation mechanisms and institutional arrangements.

Officials from the National Informatics Centre and MNRE also demonstrated the online Small Hydro Power portal, which will be used as the digital platform for implementing the scheme.

The portal will cover registration, application workflows, document submission, project monitoring, fund release and grievance redressal.

The ministry said all activities under the scheme will be carried out through the portal to ensure transparency, efficiency and real-time monitoring.

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