Small Hydro Power Scheme Approved with ₹2,584.60 Crore Outlay

Key facts

• The Union Cabinet approved a ₹2,584.60 crore scheme to support small hydro power projects for the period between the financial years 2026–27 and 2030–31.
• The scheme targets the addition of approximately 1,500 MW of capacity through projects with individual capacities ranging from 1 MW to 25 MW.
• For North Eastern states and districts along international borders, central financial assistance is set at up to ₹3.6 crore per MW or 30 per cent of the project cost, capped at ₹30 crore per project.
• In other states, the government will provide financial support of up to ₹2.4 crore per MW or 20 per cent of the project cost, with a maximum cap of ₹20 crore.
• An allocation of ₹30 crore has been earmarked for state and central agencies to prepare Detailed Project Reports (DPRs) for approximately 200 projects.
• The initiative is expected to attract an investment of around ₹15,000 crore and generate 51 lakh person-days of employment during the construction phase.