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Small Hydro Power Scheme: ₹2,584.60 Crore Cabinet Approval

20 March 20261 min read
GOVERNMENT SCHEMESSmall HydroPower Scheme:₹2,584.60 CroreCabinet Approval20 March 2026safalsetu.com

Why in the news

The Cabinet cleared a five-year plan to add small hydro capacity, aiming to expand clean power and regional energy security.

Key facts

  • Scheme: Small Hydro Power (SHP) Development Scheme, FY27–FY31.
  • Outlay: ₹2,584.60 crore.
  • Capacity target: 1,500 MW.
  • Project size: 1–25 MW.
  • Nodal ministry: New & Renewable Energy.

Central support

RegionSupport per MW (up to)
North-East and border areas₹3.6 crore
Other states₹2.4 crore

Significance

The scheme is expected to lift clean energy output and strengthen energy security at regional level.

Exam angle

  • Nodal ministry: MNRE.
  • Window: FY27 to FY31; capacity goal 1,500 MW.
  • Small hydro defined here as projects of 1–25 MW.

Test yourself

1. What is the outlay of the Small Hydro Power Development Scheme approved by the Cabinet?

The outlay is ₹2,584.60 crore.

2. What capacity does the Small Hydro Power scheme target?

It targets 1,500 MW from 1–25 MW projects.

3. Which ministry implements the Small Hydro Power Development Scheme?

The notes name the Ministry of New & Renewable Energy.