MNRE Unveils New Scheme to Unlock 1,500 MW Small Hydro Power Potential

Speaking at the workshop, officials stressed that small hydro power remains one of the most reliable and environmentally sustainable renewable energy sources available.

The Ministry of New and Renewable Energy (MNRE) has launched a major initiative to revive and expand India's small hydro power sector, unveiling a new development scheme that seeks to add around 1,500 MW of clean energy capacity over the next five years.

The announcement was made during a National Workshop on the Small Hydro Power (SHP) Development Scheme, which brought together state governments, public sector organisations, developers, technical institutions and industry stakeholders to discuss the future of small hydro projects in the country.

A key highlight of the event was the launch of the Small Hydro Power Development Scheme Guidelines for 2026-27 to 2030-31 by MNRE Secretary Santosh Kumar Sarangi. The scheme carries a total financial outlay of ₹2,584.60 crore and is designed to support project development, improve viability and accelerate deployment across India.

Small Hydro Seen as Key Part of India's Clean Energy Mix

Speaking at the workshop, officials stressed that small hydro power remains one of the most reliable and environmentally sustainable renewable energy sources available. Unlike solar and wind energy, small hydro projects can provide stable electricity generation while supporting local economic development in remote and mountainous regions.

MNRE Joint Secretary Rajesh Kulhari highlighted the significant untapped potential of the sector, noting that small hydro projects can strengthen energy access, improve grid stability and contribute to balanced regional growth, particularly in hilly and border areas where other forms of infrastructure development can be challenging.

Secretary Santosh Kumar Sarangi pointed out that India has an estimated small hydro power potential of around 21 GW, yet only a fraction of this resource has been developed so far. He said the sector offers a major opportunity to diversify the country's renewable energy portfolio while supporting energy security and rural development.

The scheme will provide Central Financial Assistance for eligible projects, support the preparation of Detailed Project Reports (DPRs), assist technical institutions and fund activities related to capacity building, awareness programmes, international cooperation and project monitoring.

Digital Platform to Improve Transparency and Project Monitoring

To simplify implementation and improve transparency, the government will introduce a dedicated online Small Hydro Power portal. During the workshop, officials from the National Informatics Centre demonstrated the platform, which will handle project registration, application processing, document submission, fund releases and grievance redressal.

All activities under the scheme will be managed through the portal, allowing real-time monitoring and improved coordination between developers, state agencies and the central government.

The Solar Energy Corporation of India (SECI), which has been designated as the National Programme Implementing Agency, outlined the scheme's eligibility conditions, funding structure and implementation timelines. Officials said special provisions have been included to improve project viability in hilly states and the North-Eastern region.

The workshop also featured detailed discussions with developers and state representatives, who provided suggestions on project approvals, statutory clearances, financing and implementation challenges.

With the launch of the new guidelines, the government is seeking to give fresh momentum to a sector that has remained largely underutilised despite its significant potential. Officials expressed confidence that stronger collaboration between the Centre, states, developers and local communities will help unlock new investments and contribute to India's broader renewable energy transition.