Small Hydel Projects
Cabinet OKs small hydro power development scheme with INR 25.85 bln outlay
This story was originally published at 17:14 IST on 18 March 2026
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--Cabinet OKs INR 25.85 bln for small hydropower development scheme
--Govt: Duration of small hydropower development scheme 5 yrs, starting FY27
--Govt: Hydropower scheme to attract invest of INR 150 bln in small projects
NEW DELHI – The Union Cabinet Wednesday approved the small hydro power development scheme for five years starting 2026-27 (Apr-Mar), with an outlay of INR 25.85 billion for setting up projects of an approximate capacity of 1,500 megawatt.
The scheme is likely to attract INR 150 billion in investment in the small hydro sector, boosting the clean energy initiative, an official release said. Under the scheme, the fund will be utilised to support small hydro projects with capacities of 1-25 MW across different states. The scheme will especially benefit hilly and northeastern states with high potential for such projects, the release said.
Under the scheme, the Centre will provide financial assistance of up to INR 300 million per project for northeastern states and in districts with an international border. For other states, the release said, it will give financial assistance of up to INR 200 million per project.
The government will also incentivise the states to prepare the detailed project report for about 200 small hydro projects under the scheme. "An amount of Rs. 30 crore (INR 300 million) has been kept to support state and central government agencies to prepare such a DPR (detailed project report)," the release said. The scheme will generate employment of 5.1 million person days, largely in rural and remote locations. End
Reported by Shweta
Edited by Saji George Titus
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