Key Terms & Concepts — UPSC Mains
Small Hydro Power Development Scheme (2026-31)
"Cabinet-approved Rs 2,584.60 crore renewable scheme to add about 1,500 MW of small hydro capacity, focused on hilly and North Eastern states."
The Small Hydro Power Development Scheme is a central scheme of the Ministry of New and Renewable Energy approved by the Union Cabinet on March 18, 2026, with an outlay of Rs 2,584.60 crore for the period FY 2026-27 to FY 2030-31. It supports small hydro projects of 1 to 25 MW capacity, targeting roughly 1,500 MW of new installed capacity, with special emphasis on hilly and North Eastern states and international border districts. Central financial assistance is up to Rs 3.6 crore per MW (30 percent of project cost, capped at Rs 30 crore) in North Eastern and border districts, and Rs 2.4 crore per MW (20 percent, capped at Rs 20 crore) elsewhere. It is expected to catalyse about Rs 15,000 crore in private investment and 51 lakh person-days of employment.
GS3 (energy, renewable resources, infrastructure). Prelims: Rs 2,584.60 crore, about 1,500 MW, 1 to 25 MW projects, under MNRE. Mains: decentralised renewable energy and North East development.
- 1 Approved by the Union Cabinet on March 18, 2026
- 2 Outlay: Rs 2,584.60 crore
- 3 Period: FY 2026-27 to FY 2030-31
- 4 Target capacity: about 1,500 MW
- 5 Project size: 1 to 25 MW (small hydro)
- 6 Ministry: New and Renewable Energy
- 7 North East and border CFA: Rs 3.6 crore per MW or 30 percent, cap Rs 30 crore
- 8 Other states CFA: Rs 2.4 crore per MW or 20 percent, cap Rs 20 crore
- 9 Expected Rs 15,000 crore private investment; 51 lakh person-days employment
The 2026-31 scheme aims to harness untapped small-hydro potential in the Himalayas and North East to support India's non-fossil energy capacity targets.
