₹2,500 Crore Boost for Small Hydro Power Eyes 10 GW Indian Capacity

RENEWABLES

Overview

India's finance ministry has approved approximately ₹2,500 crore in fiscal support for small hydropower projects up to 25 MW. This initiative aims to double the nation's installed hydro capacity to 10 gigawatts within a decade. Developers can receive central financial assistance covering 20-30% of benchmark costs. Small hydro projects offer environmental advantages, require less land, and provide operational flexibility.

Fiscal Support Approved for Small Hydro

The finance ministry's expenditure finance committee has greenlit a proposal earmarking about ₹2,500 crore for small hydropower projects. This funding is intended to provide crucial government fiscal support, paving the way for significant expansion in the sector.

Ambitious Capacity Expansion

This financial push is projected to help India double its installed hydropower capacity to 10 gigawatts over the next ten years. The plan targets hydro projects with capacities up to 25 MW, which currently account for just over 5 GW of operational capacity nationwide. The Ministry of New and Renewable Energy (MNRE) will prepare a note for cabinet approval on the scheme.

Key Benefits Highlighted

Small hydro projects, often canal-based or run-of-river systems, require less land, have longer lifespans, and offer substantial environmental benefits. They minimize deforestation and community displacement compared to larger projects. Furthermore, their operational flexibility allows them to serve as quick ramp-up capacity and meet local demand, reducing transmission losses. Industry executives note these projects are capital-intensive and benefit from phased support during construction.

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