President Of India Sanctions Implementation Of Small Hydro Power Development Scheme From 1 MW To 25 MW

The Ministry of New and Renewable Energy (“MNRE”), vide Notification dated 15.05.2026¹, has conveyed administrative approval for implementation of the Small Hydro Power (“SHP”) Development Scheme (“SHP Scheme”) for SHP projects ranging from 1 MW to 25 MW capacity for the period FY 2026-27 to FY 2030-31, with a total financial outlay of INR 2,584.60 Crores. Further, Solar Energy Corporation of India Limited (“SECI”) has been designated as the National Programme Implementing Agency (“NPIA”) for the SHP Scheme. The Government of India approved the SHP Scheme of 18.03.2026 with administrative approval granted by the President of India on 15.05.2026.

The objectives of the SHP Scheme are as follows:

1. To support the installation of approximately 1500 MW of new SHP capacity across India over the period FY 2026-27 to FY 2030-31.
2. To provide Central Financial Assistance (“CFA”) to incentivize development of SHP projects in states and union territories, with special emphasis on hilly and north-eastern states.
3. To reduce the tariff of SHP generated electricity, making it more competitive and affordable to distribution licensees/State Government, ultimately benefiting consumers.
4. To create an estimated 9,000 permanent jobs and approximately 51 lakh person-days of employment during the construction phase.
5. To contribute to India’s climate commitments by avoiding approximately 4.3 million tonnes of CO2 emissions annually after commissioning of 1500 MW of SHP capacity.
6. To support the preparation of Detailed Project Reports (“DPRs”) for minimum of 200 SHP projects, creating a pipeline for future development.
7. To foster innovation and institutional capacity through support to IITs, NITs, and technical institutions working in the SHP sector.

Footnote

^{1 3 Approval for implementation of small hydro power development scheme.}

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