India is turning greater attention to small hydropower as it expands its renewable-energy portfolio. The government says the country has about 21 GW of assessed small hydropower potential across more than 7,100 identified sites. Only about 5.2 GW has been developed so far, leaving most of the assessed potential untapped.

New Scheme Targets 1,500 MW

Minister of State for New and Renewable Energy and Power Shripad Yesso Naik said small hydropower can support energy security, decentralised generation and economic activity in remote areas.

The government’s Small Hydro Power Development Scheme for 2026-27 to 2030-31 has a financial outlay of ₹2,584.60 crore. It targets about 1,500 MW of new capacity. The scheme also supports preparation of Detailed Project Reports for about 200 projects.

India crossed 300 GW of installed non-fossil fuel capacity in July 2026. Official data put the figure at 300.50 GW as of July 31. Hydro power, including large and small projects, accounted for 57.24 GW.

Clearances And Financing Remain Key Issues

MNRE Secretary Santosh Kumar Sarangi identified project clearances and financing as important challenges for small hydropower. Forest, environmental and right-of-way approvals can affect project timelines.

Sarangi also said projects require long-term financing because of their cash-flow profile. He called for greater cooperation among banks, IREDA and multilateral institutions such as the Asian Development Bank andower session is expected to examine policy, investment, financing, technology and project development. The wider challenge is to convert India’s assessed potential into viable projects while World Bank.

Small hydropower projects can offer decentralised generation, but their development remains dependent on site conditions, environmental considerations, transmission access and financial viability.

Bharat Renewable Energy Summit To Focus On Small Hydro

The issue will receive dedicated attention at the Bharat Renewable Energy Summit & Expo 2026 in New Delhi from Nov. 2-5.

The small hydropower session is expected to examine policy, investment, financing, technology and project development. The wider challenge is to convert India’s assessed potential into viable projects while addressing ecological, financial and regulatory requirements.