Archive · 24 Jul 2025
India Revives Small Hydel Projects with New Policy
India is creating a new plan to boost small hydropower projects.
These projects, which generate electricity from water, will be built in remote areas.
The goal is to encourage more companies to participate by offering better incentives.
This will help provide electricity to these areas all the time and create jobs for local technicians.
The plan also explains how private companies can get involved, and it will help India use its potential to produce more electricity from water sources like rivers and streams.
The government plans to discuss the policy soon to make it official.
India is developing a new policy to revive small hydroelectric projects (under 25 MW).
The policy aims to attract new participants by changing the incentive structure.
It seeks to provide round-the-clock hydropower in remote locations, supporting the local economy and creating jobs.
The policy will clarify the role of private entities in feasibility, financing, storage, and distribution.
India's small hydel potential is estimated at 21 GW across 7,133 sites.
- Who
- The Ministry of New and Renewable Energy (MNRE) is preparing the policy.
- What
- India is preparing a new policy for small hydroelectric projects.
- When
- The policy is being prepared and is expected to be presented soon.
- Where
- Remote areas across India, with a high potential in mountainous regions like Jammu and Kashmir, and states like Maharashtra.
- Why
- To attract new participants, provide round-the-clock hydropower in remote locations, and utilize India's potential.
Stakeholders
Government
Incentives
Stakeholders
Developers benefit from tariff flexibility and increased project lifespans.
Government
Government provides incentives and support for infrastructure costs.
- Capacity Limit
- Under 25 MW
- Policy Focus
- Small Hydropower Projects
- Last Scheme Lapsed
- September 2017
- Potential Sites
- 7,133
- Estimated Potential
- 21 GW
- Key Beneficiary Areas
- Remote locations with access to water sources