NEW DELHI/ITANAGAR, 18 Mar: The Centre on Wednesday approved a Rs. 2,585 crore Small Hydro Power (SHP) Development Scheme for 2026-31 to set up about 1,500 MW of clean energy capacity across the country.
The scheme, cleared by the Union Cabinet chaired by Prime Minister Narendra Modi, will support small hydro projects of 1-25 MW capacity and is expected to attract investments of around Rs. 15,000 crore. It provides central financial assistance of up to 30 per cent of project cost or Rs. 3.6 crore per MW (capped at Rs. 30 crore per project) for northeastern and border areas, while other states will receive up to 20 per cent or Rs. 2.4 crore per MW, subject to a cap of Rs. 20 crore.
Reacting to the decision, Arunachal Pradesh Chief Minister Pema Khandu welcomed the move, saying it would significantly boost clean energy generation and rural economic development in the Northeast. He said the scheme would help tap the state’s vast hydropower potential, especially in remote and border regions.
Khandu noted that small hydro projects would generate local employment, strengthen infrastructure, and promote sustainable development without large-scale displacement, adding that the initiative could transform rural economies and empower local communities. (PTI)
