Govt rolls out guidelines for small hydropower projects with Rs 2,585-crore outlay

NEW DELHI: Giving a push to cleaner non-fossil energy, ministry of new and renewable energy (MNRE) has officially launched operational guidelines for setting up small hydropower projects of up to 25 MW capacity over the next five years, with a financial outlay of nearly Rs 2,585 crore.It has also launched a dedicated portal to enhance transparency and efficiency in implementation of the programme.The scheme aims to support the installation of around 1,500 MW of small hydropower capacity across the country, with special emphasis on hilly and northeastern states.The guidelines were launched during a national workshop attended by various stakeholders, including officials from states and public sector undertakings, as well as representatives of developers, technical institutions and industry associations.MNRE secretary Santosh Kumar Sarangi said India’s clean energy transition requires diversification of renewable energy sources and greater focus on region-specific solutions. He emphasised that small hydropower is a “mature, reliable and environmentally sustainable renewable energy technology” that can play a crucial role in strengthening energy security, supporting rural development and promoting balanced regional growth. While the country’s small hydropower potential is estimated at around 21 GW, Sarangi said only a fraction has been harnessed so far.Officials from the Solar Energy Corporation of India, the implementing agency for the programme, made a detailed presentation on its key features, including eligibility criteria, the financial assistance structure, project timelines, implementation mechanisms and institutional arrangements.Centre will provide financial assistance of up to Rs 30 crore, or 30% of project cost, for projects in northeastern states and districts with international borders. For other regions, support will be capped at Rs 20 crore, or 20% of project cost.The programme is expected to attract around Rs 15,000 crore in investment, boosting clean energy initiatives in remote and rural areas while creating significant employment opportunities. Officials said it is also expected to create around 9,000 permanent jobs and generate more than five lakh person-days of employment during the construction phase.