The Union Cabinet on Wednesday approved a small hydro power development scheme with an outlay of Rs 2,585 crore to support the creation of 1,500 MW of renewable energy capacity.
Announcing the decision, Union Minister Ashwini Vaishnaw said the scheme is a significant step from an environmental perspective and will promote sustainable energy generation across the country.
The projects under the scheme will be developed as run-of-river systems, which do not require large dams and are designed to avoid the displacement of local populations.
The government said India has an estimated potential of 21,000 MW of small hydro power across 7,133 sites. Currently, about 5,100 MW capacity is operational at 1,196 locations nationwide.
Each project under the scheme will have a capacity ranging from 1 MW to 25 MW. The programme will be implemented over a five-year period, up to 2030-31.
Officials said the initiative is expected to attract investments worth around Rs 15,000 crore into the small hydro sector, supporting both renewable energy goals and infrastructure development.