GS3 · Energy

Cabinet approves Small Hydro Power Development Scheme (FY27–FY31)

Battle IAS current affairs title card: Cabinet approves Small Hydro Power Development Scheme (FY27–FY31) (GS3 · Energy, 18 March 2026)

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

GS-III Infrastructure: energy, ports, roads, airports, railways; investment models

  1. 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).
  2. It gives decentralised power to remote hill areas.
Quotable data point

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: 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.

Go deeper

Official source: PIB: Cabinet: SHP Development Scheme, 18 Mar 2026

facts from cited sources only; faculty review pending