₹2,500 Crore Boost to Double India’s Small Hydro Power

The Expenditure Finance Committee of the Finance Ministry has approved a ₹2,500 crore proposal to support the development of small hydro power projects across India.

The initiative aims to help double the country’s small hydro power capacity to 10 GW over the next decade. Under the scheme, developers of projects with capacities of up to 25 MW will be eligible for Central financial assistance covering 20–30 percent of the benchmark project cost. At present, India has a little over 5 GW of operational small hydro power capacity. The Ministry of New and Renewable Energy (MNRE), which oversees the sector, will now prepare a Cabinet note for final approval.

Small hydro power projects—typically canal-based or run-of-the-river systems—require relatively less land, have longer operational lifespans, and cause minimal environmental disruption. They also contribute to local irrigation, generate employment, and help reduce transmission losses, as such projects are usually located closer to consumption centres. “Hydropower projects are capital-intensive and require support during the initial stages,” a source said.

News by Rahul Yelligetti.