SchemesFriday, 20 March 2026·https://testbook.com/current-affairs/20-march-2026-daily-current-affairs

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.

small hydro powerrenewable energyUnion Cabinetsubsidy
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