Rs. 2,584-Crore Small Hydro Scheme Targets 1,500 MW Boost in Remote Regions

New Delhi — The government has rolled out an ambitious Small Hydro Power Development Scheme for 2026–31 with a total outlay of ?2,584.60 crore, aiming to add 1,500 MW of new capacity while strengthening reliable, decentralised power generation in difficult terrains.

The initiative positions small hydropower as a key pillar in India’s clean energy strategy, particularly in regions where solar and wind projects face geographical or logistical constraints.

India currently has an estimated small hydro potential of 21,133.61 MW spread across 7,133 identified sites. Of this, about 5,171 MW — roughly 24.5% — has already been developed as of early 2026. The remaining untapped potential of over 15,960 MW presents a major opportunity for expansion through targeted policy support and private sector participation.

Approved by the Union Cabinet, the scheme focuses on developing projects with capacities ranging from 1 MW to 25 MW across various states. Special emphasis has been placed on hilly and northeastern regions, where such projects are both viable and critical for improving energy access.

By promoting decentralised generation, the programme aims to deliver consistent electricity supply to remote and hard-to-reach areas while reducing reliance on conventional energy sources.

The scheme is also expected to catalyse investments of around ?15,000 crore in the sector. In addition, it encourages the use of domestically manufactured equipment, aligning with the broader push for self-reliance and strengthening local supply chains.

To build a robust pipeline of future projects, the government has earmarked support for preparing Detailed Project Reports (DPRs) for at least 200 projects. A separate allocation of ?30 crore has been set aside to assist central and state agencies in this effort.

Officials say small hydropower is increasingly emerging as a dependable component of India’s clean energy transition, particularly suited for remote and rugged landscapes where decentralised solutions can enhance energy access and support local economic development.

With inputs from IANS