Cabinet Clears Small Hydro Power Scheme (2026‑31)

March 20, 2026
Current Context: The Union Cabinet chaired by PM Narendra Modi approved the Small Hydro Power (SHP) Development Scheme on 18 March 2026.
Cabinet Clears Small Hydro Power Scheme (2026‑31)
  • It will run from FY 2026‑27 to FY 2030‑31 with a total outlay of ₹2,584.60 crore.
  • The scheme targets installation of about 1,500 MW small hydro capacity (1–25 MW), unlocking nearly ₹15,000 crore investment.
  • Focus is on decentralised clean energy in hilly, remote, and North‑Eastern states.
  • CFA support: ₹3.6 crore/MW (30% cost, cap ₹30 crore) for NE & border districts; ₹2.4 crore/MW (20% cost, cap ₹20 crore) for other states.
  • It aims to boost renewable energy, rural electrification, and reduce fossil‑fuel dependence, supporting India’s net‑zero goals.

Question:

Q.1 The Small Hydro Power Development Scheme spans which of the following periods?
a) FY 2025–26 to FY 2029–30
b) FY 2026–27 to FY 2030–31
c) FY 2027–28 to FY 2031–32
d) FY 2024–25 to FY 2028–29

Answer: b) A standard 5-year scheme cycle—2026–27 to 2030–31.

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