New Delhi: Shri Santosh Kumar Sarangi, Secretary of the Ministry of New and Renewable Energy (MNRE), formally launched the guidelines for the Small Hydro Power (SHP) Development Scheme at a national workshop held at the Atal Akshay Urja Bhawan today.
Delivering the keynote address, MNRE Secretary Shri Sarangi highlighted the urgent need to revive and prioritize the small hydro power sector across the country. He noted that while India has an estimated potential of about 21 GW in small hydro power, only a fraction—nearly 5 GW—has been successfully harnessed so far, leaving immense opportunities for future growth.
Shri Sarangi pointed out that small hydro power serves as a mature, environmentally sustainable, and highly reliable technology. He stressed that the scheme will play a vital role in strengthening national energy security, advancing region-specific clean energy solutions, creating local employment, and driving balanced development in remote and rural areas through decentralized power generation.
The new guidelines, spanning from fiscal year 2026-27 to 2030-31, are backed by a total financial outlay of 2,584.60 crore rupees to support the installation of approximately 1,500 MW of new capacity.
To ensure smoother deployment, Shri Sarangi urged state governments to proactively identify viable project sites, fast-track statutory clearances, and establish a favorable ecosystem. He also emphasized the importance of strong institutional support with the Solar Energy Corporation of India (SECI) facilitating implementation, alongside the introduction of long-term insurance mechanisms to protect developers and build solid investor confidence in the sector.