REGULATORY · MARKET STRUCTURE · SOUTH ASIA
Union Cabinet approves Small Hydro Power Development Scheme
Change
The Union Cabinet approved a Small Hydro Power Development Scheme with an outlay of Rs 2,585 crore to support development of 1,500 MW of small hydro capacity.
Why it matters
The scheme allocates Rs 2,585 crore to support development of 1,500 MW of small hydro capacity. Projects will be implemented as run-of-river installations without constructing dams or displacing people. Individual projects will range from 1 MW to 25 MW. Implementation is scheduled for five years through 2030–31. Identified potential is 7,133 sites totaling 21,000 MW, with 5,100 MW currently operational at 1,196 sites.
Implications
- · Project designs must use run-of-river configurations and cannot involve dam construction or population displacement.
- · Central funding is limited to a Rs 2,585 crore envelope over the five-year implementation window ending 2030–31.
- · Individual project capacities are constrained to the 1–25 MW range.
- · Developers will source activity from an identified site pool totaling 7,133 sites (21,000 MW potential) with 5,100 MW already operational at 1,196 sites.
Who is affected
- · Small hydro project developers
- · Energy investors and financiers
- · State energy departments and utilities
- · Grid operators
What to watch
- · Implementation deadline: 2030–31
Source
Topics
World & Politics Policy & Regulation Energy & Power Renewable Energy Energy Transition