India approves ₹2,585 crore small hydro power scheme

Run-of-river projects mandated for funding eligibility

Change
India approved a ₹2,585 crore scheme to develop 1,500 MW of small hydro capacity through run-of-river projects.
Why it matters
The scheme restricts eligibility to non-dam projects within defined capacity limits, narrowing viable project sites and requiring rapid execution within a five-year window.
Implications
  • Developers must design run-of-river projects — dam-based projects excluded
  • Funding tied to timelines — delays risk disqualification

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