SchemesFriday, 20 March 2026·The Hindu
Cabinet clears Small Hydro Power Development Scheme 2026-31 with ₹2,584.60 crore outlay
The Union Cabinet approved a Small Hydro Power Development Scheme for FY 2026-27 to FY 2030-31.
Key highlights
Direct fact
In March 2026, the Union Cabinet approved the Small Hydro Power Development Scheme for FY 2026-27 to FY 2030-31 with a total outlay of ₹2,584.60 crore to support about 1,500 MW capacity.
Key specifics
- The scheme supports small hydro projects of 1 MW to 25 MW capacity.
- In North Eastern States and border districts, assistance is ₹3.6 crore per MW or 30% of project cost, capped at ₹30 crore.
- For other states, assistance is ₹2.4 crore per MW or 20% of project cost, capped at ₹20 crore.
- ₹30 crore is earmarked for DPR preparation for about 200 future projects.
- The scheme is expected to support 51 lakh person-days of employment and trigger about ₹15,000 crore investment.
Exam lens
Question type: energy scheme and subsidy match-the-following, 1 MW–25 MW, ₹2,584.60 crore, 1,500 MW, 51 lakh person-days; TNPSC may ask which scheme promotes decentralized renewable power with low transmission loss.