Renewable Energy Ministry Unveils Rs 12,585 Cr Small Hydropower Programme
New Delhi, June 11: The Ministry of New and Renewable Energy (MNRE) has unveiled operational guidelines for a Rs 12,585 crore programme aimed at accelerating the development of small hydropower projects across India over the next five years.
The programme seeks to facilitate the installation of around 1,500 MW of small hydropower capacity through projects of up to 25 MW each, with a particular focus on hilly regions and the northeastern states.
The ministry has also introduced a dedicated digital portal to improve transparency and streamline implementation.
The guidelines were unveiled during a national workshop attended by representatives from state governments, public sector undertakings, project developers, technical institutions and industry associations.
Boosting Small Hydro Growth
Speaking at the event, MNRE Secretary Santosh Kumar Sarangi said India’s clean energy transition requires a diversified renewable energy mix and solutions tailored to regional requirements. He described small hydropower as a mature, reliable and environmentally sustainable technology capable of strengthening energy security, supporting rural development and promoting balanced regional growth.
Sarangi noted that India possesses an estimated small hydropower potential of around 21 GW, of which only a limited portion has been developed so far.
Officials from the Solar Energy Corporation of India (SECI), the implementing agency for the programme, outlined key features of the scheme, including eligibility criteria, financial assistance mechanisms and project implementation timelines.
Under the programme, projects located in northeastern states and districts along international borders will be eligible for financial support of up to Rs 230 crore or 30 per cent of project cost. For projects in other regions, central assistance will be capped at Rs 220 crore or 20 per cent of project cost.
The ministry estimates that the programme could attract investments of around Rs 15,000 crore. It is also expected to generate approximately 9,000 permanent jobs and create more than five lakh person-days of employment during the construction phase, while expanding clean energy access in remote and rural areas.
