Why in News?
Recently the Union Cabinet, approved the Small Hydro Power (SHP) Development Scheme on March 18, 2026. This scheme marks a strategic revival of the sector with a total outlay of ₹2,584.60 crore for the period FY 2026-27 to FY 2030-31.
About
- In India, SHP refers to hydropower projects up to 25 MW capacity, managed by the Ministry of New and Renewable Energy (MNRE).
- Globally, definitions vary: under 10-50 MW, subdivided into mini (<500 kW), micro (<100 kW), and pico (<10 kW).
- India's scheme revives earlier policies from 2009/2014 with Central Financial Assistance to encourage private investment.
Key Features
- Supports run-of-the-river projects for decentralized, low-impact renewable power.
- Focuses on border, hilly, and Northeastern regions for employment, investment, and energy security.
- Builds on 2025 MNRE guideline revisions to address developer challenges and promote growth.
Advantages
- High efficiency over 80%, low emissions, and minimal ecological disruption compared to large hydro.
- Ideal for remote areas, providing reliable clean energy and local jobs.
- Enhances India's renewable targets with sustainable, community-involved development.
Challenges
- Site selection, implementation coordination, and performance monitoring in rugged terrains.
- Past issues like policy gaps, now addressed via updated guidelines.
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