The Union Cabinet’s approval of the Small Hydro Power (SHP) Development Scheme offers a major opportunity for Northeast India to expand clean energy with minimal ecological disruption. SHP projects, defined as those with capacity up to 25 MW, are suitable for the region’s fragile terrain and river systems.
The scheme provides central financial assistance of ₹3.6 crore per MW or 30% of project cost (whichever is lower), capped at ₹30 crore per project in border and northeastern areas. It also supports preparation of DPRs for around 200 projects, improving commercial viability and future project pipeline.
APSC Relevance: Important for renewable energy, Northeast development and sustainable infrastructure.
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