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Legal Central Ministry of New and Renewable Energy Electricity Act, 2003

Administrative approval for implementation of Small Hydro Power (SHP) Development Scheme

15-May-2026 | 284/4/2017-SHP

The Small Hydro Power Development Scheme has been introduced to promote the development of small hydro power projects across India during FY 2026-27 to FY 2030-31. The scheme aims to support installation of approximately 1,500 MW of new Small Hydro Power (SHP) capacity by providing Central Financial Assistance (CFA) to project developers, particularly in hilly and North-Eastern States and Union Territories. The scheme seeks to reduce the tariff of SHP-generated electricity, create employment opportunities, contribute towards reduction of carbon emissions, support preparation of Detailed Project Reports (DPRs) for future projects, and encourage innovation and institutional capacity building in the small hydro sector. Eligible project developers are required to submit applications through the online SHP portal along with prescribed documents, including project allotment letters, DPRs, statutory clearances, and undertakings.

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