Cabinet Small Hydro Scheme 2584 Crore has been approved by the Union Cabinet led by Prime Minister Narendra Modi. The scheme will run from FY 2026–27 to FY 2030–31 with a total budget of ₹2,584.60 crore. Its main goal is to develop around 1,500 MW of small hydro power across India, especially in remote and hilly regions.

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Key Features of the Scheme

This scheme supports small hydro projects with capacities between 1 MW and 25 MW. It aims to use untapped water resources in areas like the Himalayan and North Eastern regions.

Out of the total budget:

₹2,532 crore is for project development
₹30 crore is for preparing detailed project reports

This will help create a strong pipeline of future hydro projects.

Financial Support and Regional Focus

The scheme provides higher financial support to difficult regions like the North East and border areas.

North Eastern and border regions: ₹3.6 crore per MW or 30% of project cost (maximum ₹30 crore per project)
Other states: ₹2.4 crore per MW or 20% of project cost (maximum ₹20 crore per project)

This special support will help reduce regional imbalance and encourage development in remote areas.

Boost to Clean Energy and Jobs

The Cabinet Small Hydro Scheme 2584 Crore is expected to attract investments of about ₹15,000 crore in the sector. It will also create around 51 lakh person-days of employment during construction.

In addition, it will generate long-term jobs for operation and maintenance. The scheme also supports the Atmanirbhar Bharat mission by promoting the use of locally made equipment.

Environmental and Development Benefits

Small hydro projects are eco-friendly because they need less land and do not cause large displacement. They also reduce power loss as electricity is generated close to where it is used.

These projects will support rural and remote development by providing reliable energy. With a lifespan of 40 to 60 years or more, they will offer long-term benefits to local communities.