India has launched a new initiative to accelerate the development of Small Hydro Power (SHP), aiming to diversify its renewable energy mix and expand electricity access in remote regions. The Ministry of New and Renewable Energy (MNRE) unveiled the Small Hydro Power Development Scheme Guidelines for the period FY 2026-27 to FY 2030-31 during a national workshop held in New Delhi on June 9.

The scheme seeks to support the installation of approximately 1,500 megawatts (MW) of new small hydro capacity and strengthen the role of hydropower in India's clean energy transition. Officials said the initiative is designed to improve energy security, support regional development and promote sustainable growth.

New Scheme Targets 1,500 MW Capacity Addition

The newly launched program has a total financial outlay of ₹2,584.60 crore. It includes Central Financial Assistance (CFA) for project developers, support for Detailed Project Reports (DPRs), technical assistance, capacity-building programs and project monitoring mechanisms.

According to MNRE, the scheme will focus on improving project viability, particularly in hilly, remote and North-Eastern regions where small hydro resources remain largely underutilized. Officials noted that India has an estimated small hydro potential of around 21 gigawatts (GW), but only a portion of that capacity has been developed so far.

The guidelines were formally launched by MNRE Secretary Santosh Kumar Sarangi, who described small hydro as a mature and reliable renewable energy technology capable of supporting balanced regional growth.

Digital Portal To Improve Transparency And Monitoring

A key feature of the initiative is the upcoming National Online SHP Portal. Developed with support from the National Informatics Centre, the platform will manage project registration, applications, approvals, monitoring, fund releases and grievance redressal.

Officials said all activities under the scheme will be conducted through the portal to enhance transparency, efficiency and real-time tracking of project progress.

The Solar Energy Corporation of India (SECI), designated as the National Programme Implementing Agency, will oversee implementation and coordination with states and project developers.

Focus On Renewable Energy Diversification

Industry representatives, state governments and developers participated in technical discussions on project approvals, financing, regulatory clearances and implementation timelines.

Experts at the workshop highlighted the importance of diversifying renewable energy sources as India expands its clean energy capacity. While solar and wind power dominate new renewable installations, small hydro projects can provide stable power generation and support grid reliability in geographically challenging regions.

The workshop concluded with stakeholders expressing support for faster project development, stronger coordination and greater investment in small hydro infrastructure. The initiative is expected to contribute to India's broader renewable energy goals while creating economic opportunities in underserved regions.