Cabinet approves Small Hydro Power Development Scheme (FY27–FY31)
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What happened
- The Cabinet approved the SHP Development Scheme for FY 2026-27 to 2030-31 with ₹2,584.60 crore for about 1,500 MW of small hydro (1–25 MW projects) [PIB].
- Central assistance is the lower of a per-MW rate or 30% of project cost, capped at ₹30 crore per project, with a focus on hilly and North-Eastern states [PIB].
Background
- In India, small hydro (up to 25 MW) is classed as renewable and is handled by MNRE.
Why it matters
- It gives decentralised power to remote hill areas.
How to use this in Mains
- As per PIB (2026-03-18): the Cabinet approved the SHP Development Scheme for FY 2026-27 to 2030-31 with ₹2,584.60 crore for about 1,500 MW of small hydro (1–25 MW projects).
- It gives decentralised power to remote hill areas.
Quotable data pointCentral assistance is the lower of a per-MW rate or 30% of project cost, capped at ₹30 crore per project, with a focus on hilly and North-Eastern states.
PIB: Cabinet: SHP Development Scheme, 18 Mar 2026
Exam angle
UPSC
Prelims: SHP capacity definition.
Practice MCQs
Original practice questions (not PYQs).
Practice · UPSC
SHP project size range
Answer (b) & explanation
PIB.
Practice · UPSC
Outlay
Answer (b) & explanation
PIB.
Practice · UPSC
Target capacity
Answer (b) & explanation
PIB.
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Official source: PIB: Cabinet: SHP Development Scheme, 18 Mar 2026
facts from cited sources only; faculty review pending