- Why in news
- On 9 June 2026, MNRE held a national workshop in which it launched the Small Hydro Power Development Scheme Guidelines for FY 2026-27 to FY 2030-31.
- What it is
- The Small Hydro Power Development Scheme is a Central scheme of the Ministry of New and Renewable Energy. It gives Central Financial Assistance to small hydro projects and supports project reports, capacity building and monitoring. It targets the large untapped small hydro potential, especially in hilly and North-Eastern regions.
- Target capacity
- The scheme aims to support about 1,500 MW of new small hydro capacity.
- Outlay and support
- Total outlay is ₹2,584.60 crore. It covers Central Financial Assistance, DPR preparation, technical institutions, capacity building and monitoring.
- Implementing agency
- SECI is the National Programme Implementing Agency (NPIA) of the scheme.
- Potential
- Estimated small hydro potential is around 21 GW, of which only a fraction is harnessed.
- Scheme period
- The guidelines cover FY 2026-27 to FY 2030-31.
- Digital delivery
- All activities under the scheme will run through an online SHP portal built with NIC.
Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.
Why it matters
- Diversifies the renewable mix and adds firm, reliable power, helping grid stability.
- Brings energy access and local development to hilly, remote and border regions.
Problems
- Statutory clearances, land and forest issues delay projects in hilly areas.
- Only a fraction of the 21 GW potential is used, as tariffs and project viability are weak.
Way forward
- States should identify viable sites and speed up clearances.
- Use the online portal for transparent monitoring and timely release of funds.
Put in your answer
SHP potential: About 21 GW of estimated small hydro potential, mostly untapped.
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- 2008Prelims Q13Which Union Ministry is the nodal ministry for implementing the Biodiesel Mission?
- 2024Prelims Q38Which context discusses pumped-storage hydropower: irrigation, lift irrigation, storage, or rainwater harvesting?
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: Newly approved scheme with guidelines; worth a card, but the release gives few testable facts such as outlay or targets.
Worth revising until Prelims 2028: most news questions come within two years of the event.