Cabinet Approves Rs.2584.60 crore ‘SHP Development Scheme’ To Boost Clean Energy Initiatives
In March 2026, the Union Cabinet chaired by the Prime Minister (PM) Narendra Modi approved the ‘Small Hydro Power (SHP) Development Scheme’ for a period of 5 years (i.e. from Financial Year 2026-27(FY27) to FY31), with total outlay of Rs.2584.60 crore.
In March 2026, the Union Cabinet chaired by the Prime Minister (PM) Narendra Modi approved the ‘Small Hydro Power (SHP) Development Scheme’ for a period of 5 years (i.e. from Financial Year 2026-27(FY27) to FY31), with total outlay of Rs.2584.60 crore.
- This newly approved scheme is designed to install SHP projects of an approximate capacity of 1500 MegaWatt (MW) across the country.
About Small Hydro Power Development Scheme:
Implementing Agency: The scheme will be implemented by the Ministry of New & Renewable Energy (MNRE).
Maximum Energy Capacity: The new scheme will support small hydro projects ranging from 1 to 25 MW capacity to come up in different states.
Financial Support: Under SHP Development scheme, central financial assistance of Rs 3.6 crore per MW or 30% of the project cost, whichever is lower with an upper limit of Rs.30 crore per project will be provided to the NE states and in districts with international borders.
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- For other states, the government will provide financial support of Rs.2.4 crore per MW or 20% of project cost (whichever is lower), capped at Rs.20 crore per project.
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