Article

India plans to introduce a central policy to revive small hydropower (SHP) projects, targeting a capacity addition of 1.5 GW and doubling installed hydropower capacity to 10 GW in the next decade. The proposal has been cleared by the Expenditure Finance Committee and awaits Cabinet approval for the next budget cycle.

Revival involves Rs 2,500 crore in viability gap funding, covering 25-30% of project costs, with each megawatt estimated to cost Rs 10-12 crore. Enhanced support will focus on projects in hilly, northeastern, and border areas.