New Delhi, March 18: The Union Cabinet has approved a new scheme aimed at promoting small hydro power projects across the country, with a total financial outlay of Rs 2,584.60 crore. The initiative is expected to strengthen India’s renewable energy capacity while supporting sustainable and decentralized power generation.
The scheme focuses on the development, modernization, and revival of small hydro projects, which are typically defined as plants with a capacity of up to 25 MW. These projects are considered environmentally friendly and play a crucial role in providing reliable electricity, especially in remote and hilly regions.
According to official sources, the programme will support both new and existing projects. It includes provisions for upgrading old plants to improve efficiency, as well as incentives to encourage fresh investments in the sector. By addressing issues such as ageing infrastructure and financial viability, the scheme aims to unlock the untapped potential of small hydro energy in India.
Small hydro projects are particularly significant for states with abundant water resources, including those in the Himalayan and northeastern regions. These projects not only contribute to clean energy generation but also help in local employment and regional development.
The government’s decision comes at a time when India is accelerating its push toward renewable energy to meet its climate goals and reduce dependence on fossil fuels. By promoting small hydro alongside solar and wind energy, the country is adopting a more diversified approach to clean power generation.
Industry experts believe that the scheme could revive investor interest in the sector, which has faced challenges in recent years due to high initial costs and regulatory hurdles. With financial support and policy backing, small hydro projects are expected to play a more prominent role in India’s renewable energy mix.
The initiative also aligns with the broader objective of ensuring energy access in underserved areas while maintaining environmental sustainability. As implementation begins, the scheme is likely to contribute to both green energy expansion and rural development, reinforcing India’s long-term energy strategy.
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