The Union Cabinet has approved the small hydro power development scheme for the period from 2026-27 to 2030-31 with an outlay of Rs 25.85 billion for installation of about 1,500 MW of small hydro power capacity across the country.
The scheme will support projects in the 1 MW to 25 MW range and is expected to particularly benefit hilly and north-eastern states. Under the scheme, central financial assistance of up to Rs 36 million per MW or 30 per cent of project cost, subject to a cap of Rs 300 million per project, will be available for projects in north-eastern states and districts along international borders. In other states, assistance of up to Rs 24 million per MW or 20 per cent of project cost, capped at Rs 200 million per project, will be provided. Of the total outlay, Rs 25.32 billion has been earmarked for project support and Rs 300 million for preparation of detailed project reports for about 200 projects.