Small Hydropower Development Scheme

Notes on the Small Hydro Power Development Scheme

Overview

• Total Estimated Capacity: India has an estimated total small hydro power capacity of 21,133.61 MW.
• Utilized Capacity: Approximately 5,171 MW has already been harnessed (about 24.5%).
• Cabinet Approval: The Central Cabinet approved the Small Hydro Power Development Scheme with a financial outlay of ₹2,584.60 crores.
• Target: The scheme aims to increase small hydro power capacity by 1,500 MW across various states, particularly benefiting hilly and northeastern regions.

Employment Creation

• Job Creation: The construction phase is expected to generate 5.1 million person-days of employment.

Importance of Hydro Power

• Energy Security: Hydro power is a reliable renewable energy source that provides continuous electricity, unlike intermittent sources like solar and wind.
• Grid Stability: It plays a crucial role in ensuring grid stability and energy security in India's evolving energy landscape.

Scheme Features

• Capacity Definition: Small hydro projects are defined as those with a capacity of up to 25 MW and are administered by the Ministry of New and Renewable Energy.
• Financial Assistance:
  • For northeastern states and border districts: ₹3.6 crore per MW or 30% of project cost (whichever is lower), with a maximum of ₹30 crore per project.
  • For other locations: ₹2.4 crore per MW or 20% of project cost (whichever is lower), with a maximum of ₹20 crore per project.

Economic Impact

• Investment: The scheme is expected to attract an investment of approximately ₹15,000 crores into the small hydro power sector.
• Indigenous Manufacturing: It promotes the use of indigenous plants and machinery, strengthening local manufacturing and supply chains.

Regional Distribution of Capacity

• Northern Region: 7,978 MW (approx. 38%), primarily in hilly states like Himachal Pradesh and Uttarakhand.
• Northeastern Region: 3,262 MW (approx. 15%), with Arunachal Pradesh holding the largest share.
• Southern Region: 5,490 MW (approx. 26%), led by Karnataka.
• Western Region: 2,963 MW (approx. 14%), with Maharashtra leading.
• Eastern Region: 1,440 MW (approx. 7%), including states like Bihar and West Bengal.

Environmental and Social Benefits

• Sustainability: Small hydro projects have minimal environmental impact, require less land, and can operate for extended periods.
• Local Development: By improving energy access in remote areas, these projects act as catalysts for local economic growth, enhancing infrastructure and creating jobs.

Conclusion

• The Small Hydro Power Development Scheme represents a significant policy intervention aimed at unlocking India’s untapped small hydro power potential.
• By integrating targeted financial support and infrastructure development, the scheme is poised to enhance clean energy capacity and foster inclusive development across the nation.

References

• Press Information Bureau (PIB)
• NITI Aayog
• Indian Renewable Energy Development Agency (IREDA)