The scheme aims to install approximately 1,500 MW of new SHP capacity across India.

For the purpose of this Scheme, any hydroelectric project with an installed capacity between 1 MW and 25 MW.

rs.2,584.60 crore.

Solar Energy Corporation of India Limited (SECI).

30% of CERC normative capital cost as per CERC RE Regulations, 2024 or 30% of actual cost (whichever is lower), capped at 30 crore.

20% of CERC normative capital cost as per CERC RE Regulations, 2024 or 20% of actual cost (whichever is lower), capped at Rs.20 crore.

Private developers, government entities, joint ventures, or any entity allotted projects by states.

No, only projects where construction began after the scheme announcement of the scheme are eligible.

Projects must be allotted through transparent and competitive bidding. If bidding unsuccessful, on a nomination basis to government entities.

Forest clearance, techno-economic clearance, pollution board NOC, fisheries NOC, grid connectivity approval, local body NOC, irrigation clearance, and wildlife clearance (if applicable).

Only through the SHP online portal.

Project allotment letter, DPR, statutory clearances, notarized undertaking, and other MNRE specified documents, if any.

Construction must commence within six months of receiving the sanction order. If construction does not start within this period, the sanction order shall be treated as cancelled. In cases of justified delays, an extension may be considered by Secretary, MNRE on a case-to-case basis upon request by the developer.

Within 4 years of construction start, with a possible 1-year grace period.

CFA is reduced by 4% per quarter delay beyond 4 years or 5 years (in case of grace period is granted).

7 years from the start of construction; beyond this, CFA must be returned with interest for capacity not commissioned.

First instalment: 50% after 50% physical and financial progress. Final instalment: after COD and achieving 80% of projected generation for one-month w. r. t. DPR projected generation.

Private developers and government PSUs/organization must submit a bank guarantee; government departments must submit an undertaking.

Rs.10 lakhs per DPR (up to 15 MW projects), with an additional Rs.50,000 per MW above 15 MW, capped at Rs.15 lakhs.

Central/state government departments, PSUs and state nodal agencies.

At least 200 DPRs during the scheme period.

IITs, NITs, and other technical institutions of repute which have developed expertise in areas relevant to small hydro power including hydraulic turbine design, civil engineering for water structures, environmental flow assessment, and grid integration of small hydro are eligible to apply under this component.

A total of Rs.8 crore has been allocated for supporting technical institutions during FY 2026–27 to FY 2030–31.

They will be supported for research, innovation, training, capacity building, and development of technical expertise in SHP technologies.

Applications must be submitted through the dedicated SHP online portal, along with proposals detailing the scope of work, expected outcomes, and institutional capacity etc.

It is estimated that about 9,000 permanent jobs and 51 lakh person-days of employment during construction will be created.

It will avoid approximately 4.3 million tonnes of CO2 emissions annually.

Yes. To be eligible for the first instalment of CFA, project developers must submit a valid PPA signed with the State Government or DISCOM.

The PPA must have a minimum validity of 15 years.

Fresh applications on the SHP Portal will be accepted until 31st December 2030 only.