India Approves ₹2,584 Crore Small Hydro Scheme to Add 1.5 GW Capacity

The Union Cabinet has approved a ₹2,584 crore Small Hydro Power Development Scheme to support the installation of around 1,500 MW of capacity between 2026-27 and 2030-31, the government said.

The scheme is expected to attract ₹15,000 crore in total investment into the small hydro sector, particularly in remote and rural areas, while boosting clean energy deployment and job creation.

Information and Broadcasting Minister Ashwini Vaishnaw said the programme will also support the preparation of detailed project reports for nearly 200 future hydro projects, helping build a long-term development pipeline.

Small hydro projects are seen as a key component of India’s renewable energy strategy, especially for regions where large-scale solar and wind deployment is less feasible.

The Cabinet also cleared other infrastructure and economic measures, including the Bharat Audyogik Vikas Yojana (BHAVYA) aimed at developing industrial parks, alongside funding support for agriculture and highway expansion.

The hydro scheme aligns with India’s broader push to expand non-fossil fuel capacity and improve energy access in underserved regions, while supporting local economic development.