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.