SchemesFriday, 20 March 2026·The Hindu
Small Hydro Power Development Scheme approved for 2026-27 to 2030-31 with ₹2,584.60 crore outlay
The Cabinet approved a Small Hydro Power Development Scheme for FY 2026-27 to 2030-31 with support for 1 MW to 25 MW projects.
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 budget of ₹2,584.60 crore to add about 1,500 MW capacity.
Key specifics
- The scheme supports small hydro projects of 1 MW to 25 MW.
- In North Eastern States and border districts, assistance is ₹3.6 crore per MW or 30% of project cost, capped at ₹30 crore.
- In 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 trigger about ₹15,000 crore investment and 51 lakh person-days of employment.
Exam lens
Question type: Energy scheme and region-based assistance, 1 MW to 25 MW, ₹3.6 crore per MW in North East, 51 lakh person-days; TNPSC may ask about decentralized renewable energy support.