Union Cabinet has approved the Small Hydro
Power (SHP) Development Scheme
¨ The Union Cabinet has
approved the Small Hydro Power (SHP) Development Scheme. This scheme will be
implemented from the financial year 2026–27 to 2030–31, for which a budget of
₹2,584.60 crore has been allocated.
¨
The objective of this
scheme is to develop approximately 1,500 MW of small hydro power capacity
across the country. Specifically, this scheme will promote clean energy in the
hilly and Northeastern regions.
Small Hydro Power Scheme: Key Features and
Objectives
¨
This scheme is designed
to promote small hydro power projects with capacities ranging from 1 MW to 25
MW.
Key Objectives
¨
To harness untapped hydro
power potential
¨
To increase clean and
renewable energy generation
¨
To generate energy with
minimal environmental impact
¨
To promote development in
remote and inaccessible areas
Financial Assistance (SHP Scheme 2026)
¨
Under this scheme,
financial assistance will be provided to various states based on their
location.
Northeastern and Border Areas
¨
₹3.6 crore per MW or 30%
of the project cost (maximum ₹30 crore per project)
Other States
¨ ₹2.4 crore per MW or 20% of the cost (maximum ₹20 crore per project)
¨ A total of ₹2,532 crore has been specifically allocated for the development of projects.
