Small Hydro Power (SHP) Development Scheme (FY 2026-31)
Objective: Exploit untapped small hydro potential in remote and rural areas; contribute to 500 GW non-fossil fuel capacity target by 2030. Budget: ₹2,584.60 crore total outlay for FY 2026-27 to FY 2030-31. ₹2,532 crore for project implementation; ₹30 crore for detailed project reports (DPRs) for ~200 future projects. Expected to leverage total investment of ₹15,000 crore. Key Features: - Supports small hydro projects of 1-25 MW capacity. - CFA for North-Eastern States and international border districts: ₹3.6 crore/MW or 30% of cost (whichever lower); cap ₹30 crore per project. - CFA for other States: ₹2.4 crore/MW or 20% of cost (whichever lower); cap ₹20 crore per project. - Target: approximately 1,500 MW additional capacity. Beneficiaries: Hilly and North-Eastern states with high SHP potential; remote communities gaining decentralised power, reducing transmission losses. Employment: 51 lakh person-days during construction phase plus ongoing O&M jobs. Environmental: Avoids large-scale land acquisition, deforestation, and displacement.
- Small Hydro Power (SHP) Development Scheme has a total outlay of ₹2,584.60 crore for FY 2026-27 to FY 2030-31, expected to leverage total investment of ₹15,000 crore.
- Supports small hydro projects of 1-25 MW capacity targeting approximately 1,500 MW additional capacity.
- CFA for North-Eastern States and border districts is ₹3.6 crore/MW or 30% of cost (cap ₹30 crore per project); for other States ₹2.4 crore/MW or 20% of cost (cap ₹20 crore per project).
- ₹30 crore allocated for detailed project reports (DPRs) for approximately 200 future projects.
- Employment generation of 51 lakh person-days during construction phase plus ongoing O&M jobs.
- Contributes to India's 500 GW non-fossil fuel capacity target by 2030, benefiting hilly and North-Eastern states with decentralised power.
What is the Small Hydro Power (SHP) Development Scheme for FY 2026-31?
It is a Ministry of New and Renewable Energy scheme to exploit untapped small hydro potential in remote and rural areas, contributing to the 500 GW non-fossil fuel capacity target by 2030.
What is the budget outlay of the SHP Development Scheme?
The total outlay is Rs 2,584.60 crore for FY 2026-27 to FY 2030-31, with Rs 2,532 crore for project implementation and Rs 30 crore for DPRs of about 200 future projects.
What project capacity does the SHP Development Scheme support?
The scheme supports small hydro projects of 1 to 25 MW capacity and targets approximately 1,500 MW of additional capacity. Total investment leveraged is expected to reach Rs 15,000 crore.
What is the CFA for North-Eastern States under the SHP scheme?
Central Financial Assistance for North-Eastern States and international border districts is Rs 3.6 crore per MW or 30% of cost (whichever is lower), capped at Rs 30 crore per project.
What is the CFA for other States under the SHP scheme?
For other States, CFA is Rs 2.4 crore per MW or 20% of cost (whichever is lower), capped at Rs 20 crore per project. The scheme is expected to generate 51 lakh person-days of employment during construction.
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