Relevance: GS III (Economy & Environment)

The Union Government has approved the Small Hydro Power Development Scheme with an outlay of ₹2,585 crore to promote clean energy generation through small hydro projects across India, with special focus on Northeast and hilly regions.

Key Features of the Scheme

1. Project Scope

• Implementation period: 2026–27 to 2030–31
• Target capacity: 1,500 megawatts
• Applicable to small hydro projects (1–25 megawatts capacity)

2. Financial Assistance

Northeast and border areas:

• Up to ₹3.6 crore per megawatt or 30% of project cost (whichever is lower)
• Maximum limit: ₹30 crore per project

Other States:

• Up to ₹2.4 crore per megawatt or 20% of project cost
• Maximum limit: ₹20 crore per project

Objectives

• Promote renewable and clean energy generation.
• Utilise untapped hydro potential in remote areas.
• Encourage private sector investment (estimated ₹15,000 crore).
• Support energy access in difficult terrains, especially in Northeast India.

Importance for Northeast India

The Northeast region has abundant river systems and hilly terrain, making it ideal for small hydro projects.

Benefits

• Provides reliable electricity in remote villages.
• Reduces dependence on fossil fuels and diesel generators.
• Supports local employment and regional development.
• Enhances energy security in border areas.

What is Small Hydro Power?

• Refers to hydropower projects with capacity up to 25 megawatts.
• Usually based on run-of-the-river systems, which do not require large dams.
• Considered environment-friendly with minimal displacement and ecological impact.

Policy Context

• Increasing the share of renewable energy in the energy mix.
• Achieving climate commitments under global agreements.
• Promoting sustainable infrastructure development.

Exam Hook (Prelims)

Consider the following statements:

Small hydro power projects have a capacity of up to 25 megawatts.
They are generally considered more environmentally-friendly than large hydro projects.
The Small Hydro Power Development Scheme provides higher financial assistance to Northeast and border regions.

Which of the statements given above are correct?

(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (d)

One-line Wrap:

The Small Hydro Power Development Scheme aims to harness clean energy potential in Northeast India while promoting sustainable and decentralised power generation.