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EnvironmentPIB27 April 2026

Small Hydro Power: India Achieves 5,000 MW Installed Capacity Milestone

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๐Ÿ“Œ Summary:

  • India has crossed 5,000 MW of installed Small Hydro Power (SHP) capacity, making it one of the top 5 nations globally in SHP development

  • Small Hydro Power defined as projects up to 25 MW capacity; these are run-of-river projects with minimal environmental impact compared to large dams

  • Ministry of New and Renewable Energy (MNRE) has been implementing SHP development through the Central Financial Assistance (CFA) scheme providing โ‚น1.5 crore/MW for general states and โ‚น2 crore/MW for special category states

  • Himachal Pradesh, Uttarakhand, Jammu & Kashmir, and northeastern states hold ~70% of India's SHP potential of 21,135 MW

  • Current achievement of 5,000 MW represents only 23.6% of the total assessed potential, indicating significant untapped opportunity

  • SHP projects benefit local communities: provide electricity to remote/hilly areas not connected to the grid, generate local employment, and support tourism infrastructure

  • Challenges include geological surveys, forest clearances, displacement issues, and grid connectivity in remote areas

  • SHP contributes to India's target of 500 GW non-fossil fuel capacity by 2030 under Nationally Determined Contributions (NDCs)

  • MNRE is encouraging private sector participation through competitive bidding and simplification of approval processes

small hydro powerrenewable energyMNRE500 GW targetrun-of-river

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