MNRE Issues Guidelines for Small Hydropower Projects to Boost Clean Energy

The Ministry of New and Renewable Energy (MNRE) has released operational guidelines for a Rs 12,585 crore programme designed to accelerate the development of small hydropower projects across India over the next five years.

The initiative aims to facilitate the installation of approx. 1,500 MW of small hydropower capacity through projects of up to 25 MW each, with a strong emphasis on hilly regions and the northeastern states. To improve transparency and streamline execution, the Ministry has also launched a dedicated digital portal for project management and monitoring. Under the scheme, projects located in Northeastern states and districts along international borders will be eligible for financial support of up to Rs 230 crore or 30 percent of the project cost, while projects in other regions will receive assistance capped at Rs 220 crore or 20 percent of the cost.

The programme is expected to attract investments of around Rs 15,000 crore, generate about 9,000 permanent work roles, and create over five lakh person-days of employment during construction. Officials highlighted that India has an estimated small hydropower potential of about 21 GW, much of which remains untapped.

The Solar Energy Corporation of India (SECI), the implementing agency, will oversee project execution, eligibility criteria and funding mechanisms to ensure efficient rollout and expanded access to clean, decentralized energy across rural and remote areas.