Government launches SHP scheme guidelines to accelerate small hydro power development across India
The government on Tuesday launched the guidelines for the Small Hydro Power (SHP) Development Scheme for the period FY 2026-27 to FY 2030-31, aiming to accelerate the development of small hydro projects across the country and tap India's vast untapped hydropower potential.
The guidelines were unveiled during a national workshop organised by the Ministry of New and Renewable Energy.
The event brought together representatives from state governments, public sector undertakings, developers, technical institutions and industry stakeholders associated with the small hydro power sector.
The newly launched scheme seeks to support the installation of around 1,500 MW of new small hydro power capacity and has been allocated a total financial outlay of Rs 2,584.60 crore.
The scheme provides Central Financial Assistance (CFA) for project development, support for preparation of Detailed Project Reports (DPRs), assistance to technical institutions and funding for capacity building, awareness programmes, international cooperation and project monitoring.
Addressing the gathering, Santosh Kumar Sarangi, Secretary, MNRE said India's clean energy transition requires diversification of renewable energy sources and greater focus on region-specific solutions.
He described small hydro power as a mature, reliable and environmentally sustainable technology that can strengthen energy security, promote rural development and support balanced regional growth.
He noted that India has an estimated small hydro power potential of about 21 GW, but only a limited portion has been harnessed so far, leaving substantial scope for future development.
He urged states to proactively identify viable project sites, facilitate statutory clearances and create an enabling environment for faster implementation of projects.
Earlier, MNRE Joint Secretary Rajesh Kulhari highlighted the importance of the new scheme in unlocking untapped hydro resources, particularly in hilly, remote and border regions.
He said small hydro power can play a significant role in improving energy access, supporting local economic development and enhancing grid stability.
Akash Tripathi, Managing Director of Solar Energy Corporation of India Limited, underscored the role of small hydro power in India's renewable energy transition and stressed the need for close coordination among implementing agencies, developers and state governments.
He reiterated SECI's commitment to efficient implementation of the scheme as its National Programme Implementing Agency.
