According to government estimates, India has a potential of nearly 21 GW of small hydropower capacity spread across more than 7,000 sites. (Image generated using AI)The Union cabinet on Wednesday approved a new scheme to promote development of small hydropower projects with a total capacity of around 1,500 MW. With a financial outlay of Rs 2,585 crore, the scheme will support projects ranging from 1 MW to 25 MW over a period of five years. It comes after the previous hydropower scheme ended in 2017.The scheme is expected to strengthen India’s renewable energy push, which already accounts for over 50% of the country’s total installed capacity. However, the contribution of small hydropower remains modest, currently standing at just 5.1 GW.According to government estimates, India has a potential of nearly 21 GW of small hydropower capacity spread across more than 7,000 sites. So far, only 1,196 of these sites have been developed. The new scheme is designed to unlock this untapped potential.Small hydropower projects offer several advantages, the Centre highlighted. These include minimal environmental impact, as they do not require large dam construction or extensive environmental clearances. They also have a lifespan of over 40 years, involve no displacement of local communities, and can be implemented relatively faster.“They are environment-friendly and cost-efficient. The cost of electricity generation is around Rs 4.5 to Rs 5.5 per unit, and implementation timelines are shorter,” Union Minister Ashwini Vaishnaw said at the Cabinet briefing.According to the government, the scheme will benefit hilly and North Eastern states that have a high potential for such projects. Central financial assistance to the tune of Rs 3.6 crore per MW or 30% of the project cost, whichever is lower with an upper limit of Rs 30 crore per project will be provided in the North Eastern states and in districts with international borders.In other states, assistance of Rs 2.4 crore per MW or 20% of project cost, whichever is lower with a cap of Rs 20 crore per project will be provided, the government added. “This is likely to bring in Rs 15,000 crore of investment in the small hydropower sector, giving a boost to the clean energy initiative, investment in remote and rural areas and creating significant employment opportunities,” it said.Story continues below this ad“The investment will also leverage 100% of the plant and machinery from indigenous sources fulfilling the objective of Atmanirbhar Bharat,” the government added. © The Indian Express Pvt LtdTags:Cabinethydropower projects