About Small Hydro Power Development Scheme:
- It supports the installation of small hydro projects (1-25 MW capacity each) with a total capacity 1,500 MW across the country.
- Its special focus is on hilly and North-Eastern states that hold high untapped potential.
- Time Period: FY 2026-27 to FY 2030-31
- Key Features of Small Hydro Power Development Scheme
- North East & Border Incentives: Higher central financial assistance (CFA) of 30% of cost, capped at ₹30 crore per project for North Eastern states and international border districts.
- General State Support: CFA of 20% of cost, capped at ₹20 crore per project for other states.
- DPR Pipeline: Allocation of ₹30 crore to support government agencies in preparing Detailed Project Reports (DPRs) for about 200 future projects.
- Employment Generation: Expected to create employment during construction, plus long-term roles in operations and maintenance.
- Indigenous Sourcing: Mandates 100% sourcing of plant and machinery from domestic manufacturers to boost the local industrial base.
- The initiative emphasises environment-friendly "run-of-the-river" technology that generates power directly from the natural flow of rivers without large dams, minimising displacement, deforestation and ecological disruption.
- Significance: SHP projects are environmentally sustainable, as they avoid large-scale land acquisition, deforestation, and displacement of communities.
