Are the government’s small hydropower plans back on track? Yes, say sources. The Centre is considering reviving the small hydropower scheme in the upcoming Budget 2026, with a new target of generating 1.5 GW of power.
The scheme was first launched in 2015 to promote hydroelectric power from small rivers and streams. However, it failed to take off due to lack of funding and bureaucratic hurdles.
What went wrong the first time?
The earlier scheme faced several challenges, including difficulty in securing loans from banks and a complex approval process. As a result, only a handful of projects were completed, and the scheme’s overall impact was limited.
Now, with the Centre looking to revive the scheme, experts hope that the new target of 1.5 GW will bring much-needed momentum to the sector. They believe that small hydropower projects can provide reliable and renewable energy to rural areas, reducing dependence on fossil fuels.
The government’s move is also seen as a step towards achieving its goal of increasing the share of renewable energy in the country’s power mix. With the Budget 2026 looming, all eyes are on the government to see if it will announce a new package for small hydropower projects.
What happens next will be closely watched by stakeholders in the renewable energy sector. If the scheme is revived, it could lead to a surge in new projects and create jobs in rural areas. It will also be a significant step towards reducing India’s carbon footprint and ensuring energy security.