Small Hydro Power (SHP) Development Scheme (FY 2026-31) MCQ - Practice Questions with Answers

Option D reverses the rule. No assistance is considered for a project that is not completed or does not begin commercial operations within 7 years from the start of construction. The ordinary deadline is 4 years, a justified one-year grace may be allowed, and quarterly delay reduces eligible assistance by 4%.

The approved scheme outlay is ₹2,584.60 crore, including about ₹96 crore of committed liabilities from earlier small-hydro schemes. The nearby figure ₹2,532.60 crore relates only to assistance for 1-25 MW projects, while ₹15,000 crore is expected sectoral investment.

The component table assigns ₹2,532.60 crore to assistance for 1-25 MW projects, including the processing fee; ₹30 crore to at least 200 Detailed Project Reports; ₹8 crore to technical institutions; and ₹14 crore to public awareness, capacity building, international cooperation and project monitoring. Hence 1-S, 2-R, 3-P and 4-Q is the only complete match.

All three statements are explicit in the operational guidelines. The capacity objective is approximately 1,500 MW; Solar Energy Corporation of India serves as the national implementing agency; and eligibility is limited to projects whose construction began after the scheme announcement on 18 March 2026.

The operational guidelines define an eligible small hydro project as one having installed capacity of not less than 1 MW and up to and including 25 MW. Thus, both endpoints matter: a sub-1 MW project and a project exceeding 25 MW fall outside this scheme.