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GOVERNMENT / POLITY Union Cabinet Decisions

Cabinet Greenlights ₹2,584 Crore Scheme for Small Hydro Power Development

The Union Cabinet approved the Small Hydro Power (SHP) Development Scheme (2026–31) with a total financial outlay of ₹2,584 crore to add 1500 MW of clean energy.
The scheme targets eco-friendly projects between 1 MW and 25 MW capacity, focusing primarily on the North-East region and border areas.
Subsidy support is categorized: North-East/Border areas receive up to ₹3.6 crore per MW (max ₹30 crore/project), while other states get ₹2.4 crore per MW (max ₹20 crore/project).
Out of the total budget, approximately ₹2,532 crore is specifically earmarked for project development over the next five years.
Exam Perspective: This initiative supports India's COP26 commitments to net-zero emissions and enhances energy security in geographically remote regions.

Key Facts / Static GK

Ministry of New and Renewable Energy (MNRE) Minister: Pralhad Joshi
Small Hydro Power Limit in India: Up to 25 MW
Scheme Duration: 2026 to 2031

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