Union Minister of State for New and Renewable Energy and Power Shripad Yesso Naik has highlighted the potential of Small Hydro Power (SHP) to strengthen India’s clean energy transition, energy security and decentralised power generation, particularly in remote and geographically challenging regions.
Addressing the curtain-raiser programme for the dedicated SHP session at the Bharat Renewable Energy Summit & Expo 2026 in New Delhi on Thursday, Naik said India needs a diverse, balanced and resilient renewable energy portfolio suited to its geography and development requirements.
Only 5.2 GW of 21 GW potential harnessed
Naik said India’s assessed Small Hydro Power potential stands at around 21 GW across more than 7,100 identified sites, but only about 5.2 GW has so far been harnessed, leaving substantial scope for expansion.
He said SHP can contribute not only to additional generation capacity but also to decentralised electricity supply, employment and socio-economic development in remote areas.
Where technically and environmentally feasible, appropriately designed run-of-river projects can provide renewable power with relatively lower land requirements and without the large-scale submergence and displacement associated with major reservoir-based projects.
₹2,584.60 crore scheme proposed
The Minister highlighted the Government’s proposed Small Hydro Power Development Scheme for 2026-27 to 2030-31, with an outlay of ₹2,584.60 crore.
The scheme targets around 1,500 MW of new SHP capacity and will also incentivise States to prepare Detailed Project Reports (DPRs) for around 200 projects, creating a pipeline for future development.
Naik stressed that government support alone would not be sufficient to realise the sector’s full potential. He called for stronger partnerships among the Centre, States, developers, financial institutions, technology providers and investors.
He also underlined the need for policy certainty, streamlined approvals, improved ease of doing business, stronger Centre-State coordination and greater project bankability.
Clearances and financing remain key challenges
MNRE Secretary Santosh Kumar Sarangi identified long project lead times as a major challenge for hydropower development. Delays in forest, environmental and right-of-way clearances can affect timely project execution, he said.
Sarangi noted that the Ministry of Environment, Forest and Climate Change has assured timely clearances, particularly for small hydropower projects. He called for a mechanism to generate and escalate alerts in cases of undue delays.
He also stressed the need to improve the bankability of SHP projects, noting their distinctive cash-flow profile and the resulting requirement for long-term patient capital.
The Secretary urged the Indian Renewable Energy Development Agency (IREDA) to work with banks and multilateral institutions, including the Asian Development Bank (ADB) and the World Bank, to facilitate greater access to patient capital for project developers.
SHP session at Bharat Renewable Energy Summit
The dedicated Small Hydro Power session at the Bharat Renewable Energy Summit & Expo 2026, scheduled from November 2 to 5 at Bharat Mandapam, New Delhi, will focus on policy reforms, investment, financing, technology and partnerships.
Naik invited stakeholders to participate in the national effort to harness India’s river systems, geographical diversity, indigenous technological capabilities and modern innovation to build a cleaner, stronger and more sustainable energy system.
The curtain-raiser was attended by senior government officials, industry representatives, researchers and other stakeholders.
