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MNRE Launches Small Hydro Power Development Scheme
The SHP Development Scheme aims to harness the unique strengths of small hydropower projects. The scheme is currently relevant for expanding small hydro capacity during FY 2026–27 to FY 2030–31.
SHP Development Scheme:
| Dimension | Key Details |
|---|---|
| Tenure | The scheme is implemented from FY 2026–27 to FY 2030–31. |
| Objective | The scheme provides for support to Small Hydro Projects with 1–25 MW capacity. |
| Administering Ministry | Small Hydro Projects are administered by the Ministry of New and Renewable Energy. |
| Large Hydropower | Large hydropower projects above 25 MW fall under the Ministry of Power. |
| India’s SHP Potential | India’s total Small Hydro Project potential is 21,133.61 MW, of which 24.5% or 5,171 MW has been harnessed by early 2026. |
| Target | The scheme provides for unlocking 1,500 MW of new Small Hydro Project capacity. |
| Financial Assistance | The scheme provides financial assistance of ₹3.6 crore per MW or 30% of project cost in North Eastern States and international border districts, with a cap of ₹30 crore per project. |
| Other Locations | For other locations, the scheme provides financial assistance of ₹2.4 crore per MW or 20% of project cost, with a cap of ₹20 crore per project. |