Union Cabinet pushes small hydropower to unlock 1,500 MW, power remote areas with ₹2,584 cr scheme

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India is set to accelerate its clean energy transition in hilly and remote areas .with a targeted push for small hydro power, aiming to add 1,500 Megawatts (MW)of capacity over the next five years while generating 51 lakh person-of employment during construction

The Government of India has approved a ₹2,584 crore scheme to promote small hydropower projects, aiming to add 1,500 MW of renewable energy capacity by 2031. The initiative focuses on developing projects in remote and hilly regions, particularly in the North Eastern states, where energy access remains a challenge despite significant untapped hydro potential.

The scheme will support small hydro projects ranging from 1 MW to 25 MW, primarily based on run-of-river technology, ensuring minimal environmental impact and displacement. It is expected to attract substantial private investment, boost local employment, and strengthen decentralized power generation.

By enhancing clean energy capacity and improving electricity access in underserved areas, the initiative aligns with India’s broader goals of sustainable development, energy security, and transition towards renewable energy sources.

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