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Small Hydro Power Programme

About

The Government of lndia has approved the'small Hydro Power (sHP) Development Scheme for the period FY 2026-27 to FY 2030-31' with a total financial outlay of Rs. 2,584 60 crore on 18th March 2026. The scheme targets installation of approximately 1 ,500 MW of new SHP capacity across lndia. For the purpose of these Guidelines and the Scheme, Small Hydro Power (SHP) refers to hydroelectric power projects having an installed capacity not less than 1 MW and up to (and including) 25 MW. SHP projects harness the energy of flowing water such as rivers, streams, canals etc. to generate electricity without requiring dams or significant land submergence. They are recognized globally as an environmentally sustainable and technically mature source of renewable energy.

Eligibility Criteria

  1. Private Sector companies/developers, government sector entities, Joint Venture or any other entity may apply.
  2. The projects must be allotted through a transparent and competitive bidding process to the project developers.
  3. In cases where competitive bidding is attempted but does not produce successful outcomes, the project may be allotted to the Government Sector entity/departmenton a nomination basis.
Quick Information
Funding Agency
Ministry of New and Renewable Energy (MNRE)
Ministry / Department
Ministry of New and Renewable Energy (MNRE)
Organisation
Ministry of New and Renewable Energy (MNRE)
Programme Type
Societal Development
Focus Area
Hydroelectric Power
Purpose
Clean and sustainable energy generation
Funding Cycle
The project will be eligible to avail 50% of CFA as first installment on completion of 50% physical progress and 50% of financial progress. The 50% physical progress will be verified by SNA based on the overall physical progress achieved for Civil work, Electromechanical and connected switchyard & duly supported by documents.
Duration
The Power Project Agreement should have a minimum tenure of 15 years.
Application Method
Online
Source
Ministry of New and Renewable Energy (MNRE), Government of India
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