Relevance: GS III (Infrastructure, Energy, and Environment)  | Source: PIB

1. What is the News? 

The Union Cabinet has officially launched the Small Hydro Power (SHP) Development Scheme to make India self-reliant in clean energy.

• Solar and wind energy are great, but they stop when there is no sun or wind. Hydropower flows 24×7. This scheme aims to build small water-powered electricity plants in remote, hilly areas where setting up big electric towers is too difficult.

2. The Administrative Difference

An administrator must know the strict difference between small and large hydro plants:

• Small Hydropower (SHP): Projects producing up to 25 MW of electricity. These are managed by the Ministry of New and Renewable Energy (MNRE).
• Large Hydropower: Projects producing more than 25 MW. These are managed by the Ministry of Power.

3. Key Features of the Scheme

This scheme acts as a financial helping hand to build localized power stations.

• The Target: To generate 1,500 MW of new electricity by the year 2031.
• The Budget: The government will spend roughly ₹2,584 crore.
• Special Focus on Borders & North-East: To ensure our borders are developed and secure, the government gives them extra financial help (up to ₹3.6 crore per MW). Other states get slightly less (up to ₹2.4 crore per MW).
• Future Planning: ₹30 crore is kept aside exclusively to help states make Detailed Project Reports (DPRs) so the sector keeps growing in the future.

4. India’s Hidden Geography (Where is the Potential?)

India has massive rivers, but we are under-using them.

• The Untapped Wealth: India has the potential to make over 21,000 MW of power this way, but currently, we are using less than 25% of it.
• Northern Leader: The North (Himachal Pradesh, Uttarakhand, J&K) holds the highest potential because of its steep mountains.
• Southern User: The South (led by Karnataka) has the second-highest potential, but right now, it is the most successful at actually generating this power because of better infrastructure.

UPSC Value Box

With reference to hydroelectric power generation in India, consider the following statements:

1. Small Hydropower Projects (SHPs) are defined as those having an installed capacity of up to 25 MW.
2. The administrative jurisdiction for Small Hydropower Projects (SHPs) lies exclusively with the Ministry of Power.
3. A key advantage of SHPs is their ability to reduce Transmission and Distribution (T&D) losses by generating electricity close to consumption centers.

Which of the statements given above is/are correct?

(a) 1 and 2 only             (b) 1 and 3 only

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

Correct Answer: (b)