MNRE Launches Small Hydro Power Development Scheme

12 Jun 2026 CW Team

In his welcome the joint secretary Rajesh Kulhari said the approved SHP Development Scheme aims to unlock untapped hydro potential and to strengthen energy access, local economic development, grid stability and sustainable growth in hilly and remote regions. The secretary Santosh Kumar Sarangi launched the Scheme guidelines for fiscal years 2026-27 to 2030-31 and described the step as a milestone for the sector. The managing director of the Solar Energy Corporation of India highlighted SECI’s role as national programme implementing agency and urged close coordination among stakeholders.

The Scheme aims to support installation of approximately 1,500 megawatt (MW) of new SHP capacity and carries a total financial outlay of Rs 25.846 billion (bn). It offers central financial assistance for projects, support for preparation of detailed project reports, backing for technical institutions and funds for capacity building, awareness generation, international cooperation and monitoring. Officials noted that the country’s estimated SHP potential is around 21 gigawatt (GW), of which only a fraction has been harnessed, creating a significant opportunity.

Technical sessions saw SECI officials explain eligibility, assistance structure, timelines and institutional arrangements while NIC demonstrated the online SHP portal that will serve as the digital platform for scheme implementation. Participants raised queries on project allotment, clearances, DPR preparation, financial assistance and portal functionalities, and offered suggestions to refine processes. The ministry affirmed its commitment to work with states, developers, financial institutions and local communities to accelerate small hydro development and to ensure transparency and real-time monitoring.

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The Ministry of New and Renewable Energy organised a national workshop on the Small Hydro Power (SHP) Development Scheme in New Delhi, bringing together state governments, nodal agencies, public sector undertakings, developers, technical institutions and industry associations. The event presented the new scheme guidelines and sought to foster coordination across implementing agencies and states. Officials said the workshop aimed to align project timelines and improve viability. In his welcome the joint secretary Rajesh Kulhari said the approved SHP Development Scheme aims to unlock untapped hydro potential and to strengthen energy access, local economic development, grid stability and sustainable growth in hilly and remote regions. The secretary Santosh Kumar Sarangi launched the Scheme guidelines for fiscal years 2026-27 to 2030-31 and described the step as a milestone for the sector. The managing director of the Solar Energy Corporation of India highlighted SECI’s role as national programme implementing agency and urged close coordination among stakeholders. The Scheme aims to support installation of approximately 1,500 megawatt (MW) of new SHP capacity and carries a total financial outlay of Rs 25.846 billion (bn). It offers central financial assistance for projects, support for preparation of detailed project reports, backing for technical institutions and funds for capacity building, awareness generation, international cooperation and monitoring. Officials noted that the country’s estimated SHP potential is around 21 gigawatt (GW), of which only a fraction has been harnessed, creating a significant opportunity. Technical sessions saw SECI officials explain eligibility, assistance structure, timelines and institutional arrangements while NIC demonstrated the online SHP portal that will serve as the digital platform for scheme implementation. Participants raised queries on project allotment, clearances, DPR preparation, financial assistance and portal functionalities, and offered suggestions to refine processes. The ministry affirmed its commitment to work with states, developers, financial institutions and local communities to accelerate small hydro development and to ensure transparency and real-time monitoring.

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