🚄 Infrastructure & Energy / Energy & Power

Cabinet approves ₹2,584.60-crore Small Hydro Power Development Scheme for 2026-27 to 2030-31

📅 18 March 2026 📍 India Must know

The Union Cabinet on 18 March 2026 approved the Small Hydro Power (SHP) Development Scheme for FY 2026-27 to FY 2030-31 with an outlay of ₹2,584.60 crore for about 1,500 MW of projects of 1–25 MW each.

Summary

The Small Hydro Power (SHP) Development Scheme for FY 2026-27 to FY 2030-31 was approved by the Union Cabinet on 18 March 2026 with an outlay of ₹2,584.60 crore for about 1,500 MW of small hydro projects of 1–25 MW, especially in hilly and North Eastern states. In North Eastern states and districts on international borders, central assistance is ₹3.6 crore per MW or 30% of project cost, whichever is lower, capped at ₹30 crore per project; elsewhere it is ₹2.4 crore per MW or 20%, capped at ₹20 crore. Of the outlay, ₹2,532 crore is earmarked for projects and ₹30 crore for preparing DPRs for about 200 projects. The scheme is expected to bring ₹15,000 crore of investment and 51 lakh person-days of employment, with 100% indigenous plant and machinery.

Key facts

Period: FY 2026-27 to FY 2030-31
Outlay: ₹2,584.60 crore
Capacity: About 1,500 MW; projects of 1–25 MW
NE & border districts: ₹3.6 crore/MW or 30%, max ₹30 crore/project
Other states: ₹2.4 crore/MW or 20%, max ₹20 crore/project
DPR support: ₹30 crore for about 200 projects
Expected: ₹15,000 crore investment; 51 lakh person-days

Practice MCQs 3 questions

What is the outlay of the Small Hydro Power Development Scheme (FY 2026-27 to 2030-31) approved in March 2026?

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Correct answer: D — ₹2,584.60 crore

The Cabinet approved the SHP Development Scheme with an outlay of ₹2,584.60 crore for about 1,500 MW.

Q2 Advanced

The Small Hydro Power Development Scheme (2026-31) supports projects of what capacity range?

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Correct answer: A — 1–25 MW

The scheme supports small hydro projects of between 1 and 25 MW capacity.

Q3 Advanced

Consider the following about the Small Hydro Power Development Scheme (2026-31): 1. In North Eastern states and international border districts, central assistance is ₹3.6 crore per MW or 30% of project cost, whichever is lower, capped at ₹30 crore per project. 2. The scheme aims at about 1,500 MW of small hydro capacity. Which of the above is/are correct?

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Correct answer: C — Both 1 and 2

Both are correct as per the Cabinet decision of 18 March 2026.