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Small Hydro Power Development Scheme approved with Rs 2,584.60 crore

20 March 20261 min read
NATIONAL AFFAIRSSmall Hydro PowerDevelopment Schemeapproved with Rs2,584.60 crore20 March 2026safalsetu.com

Why in the news

The Union Cabinet cleared a five-year scheme to speed up small hydropower and push the clean energy transition.

Key facts

  • Small Hydro Power (SHP) Development Scheme: a centrally sponsored scheme for projects of 1-25 MW.
  • Period: FY 2026-27 to FY 2030-31; central allocation ₹2,584.60 crore.
  • Expected to mobilise about ₹15,000 crore.

Central Financial Assistance (CFA)

RegionPer MWShare of project costCap per project
North-Eastern and border States₹3.6 croreUp to 30%₹30 crore
Other States₹2.4 croreUp to 20%₹20 crore

Other features

  • ₹30 crore for Detailed Project Reports on 200 future projects.
  • Atmanirbhar Bharat push: 100% indigenous plant and machinery is mandatory.

Exam angle

  • Nodal ministry: MNRE.
  • Capacity range: 1-25 MW.