Clean Energy Scheme – News Analysis India https://newsanalysisindia.com The news you need to know, explained Wed, 18 Mar 2026 00:00:00 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 ₹2,584 Crore Boost: Cabinet’s Plan for Small Hydro Power Growth https://newsanalysisindia.com/business/%e2%82%b92584-crore-boost-cabinets-plan-for-small-hydro-power-growth/ Wed, 18 Mar 2026 00:00:00 +0000 http://newsanalysisindia.local/%e2%82%b92584-crore-boost-cabinets-plan-for-small-hydro-power-growth/ New Delhi’s power corridors lit up with a major announcement as the Modi-led Cabinet approved a ₹2,584.60 crore initiative to propel small hydro projects (SHPs) nationwide. Spanning 2026-27 to 2030-31, the scheme focuses on 1-25 MW installations, prioritizing hilly terrains and the Northeast where hydro potential remains largely unexplored.

Job creation stands out as a cornerstone, with 51 lakh man-days during construction and sustained employment in rural operations. The decentralized nature slashes transmission losses, making these projects efficient for off-grid power supply.

Funding varies by region: Border and northeastern areas get generous support up to ₹3.6 crore/MW or 30% cost (max ₹30 crore/project), while others receive ₹2.4 crore/MW or 20% (max ₹20 crore). Over ₹2,532 crore targets tough geographies, expecting to draw ₹15,000 crore total investment.

‘Make in India’ is mandatory for all equipment, fostering domestic manufacturing. A ₹30 crore fund aids states in crafting DPRs for 200 projects. These eco-friendly ventures sidestep major environmental pitfalls like flooding or relocation, offering 40+ year operational lifespans.

This forward-thinking policy not only accelerates clean energy adoption but also drives economic growth in backward regions. By bridging energy access gaps, it promises lasting employment, local investment, and a greener future, aligning perfectly with India’s renewable ambitions.

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