Page 70 - Policy Economic Report - September 2026

POLICY AND ECONOMIC
OIL & GAS MARKET

13. Small Hydro Power has a distinctive role in India’s clean energy transition: Shri Shripad Yesso Naik

Small Hydro Power has a distinctive role in India’s clean energy transition, said Shri Shripad Yesso
Naik, Minister of State for New and Renewable Energy and Power while addressing the Curtain Raiser
Programme for the dedicated Small Hydro Power (SHP) session at the Bharat Renewable Energy
Summit & Expo 2026 held in New Delhi. Addressing the gathering, he said that Small Hydro Power can
contribute to energy security, decentralised generation, employment and socio-economic
development in remote areas.

Shri Naik said that under the visionary leadership of Prime Minister Shri Narendra Modi, India’s clean
energy journey has undergone a remarkable transformation, propelling the country to the forefront
of the global energy transition. He said renewable energy has emerged as a powerful instrument of
energy security, economic growth, technological progress and employment generation.

The Minister highlighted that India has crossed the milestone of 300 GW of installed non-fossil-fuel
capacity. He said the strength of India’s energy transition lies in building a diverse, balanced and
resilient energy portfolio suited to the country’s geography, resources and development needs.

Shri Naik emphasized the significant potential of Small Hydro Power in this context. He said India’s
presently assessed Small Hydro Power potential is around 21 GW across more than 7,100 identified
sites, of which only about 5.2 GW has been harnessed. He noted that this represents a significant
opportunity for further development of the sector.

Shri Naik said the significance of Small Hydro Power goes beyond adding generating capacity. He
noted that, wherever technically and environmentally feasible, appropriately designed run-of-river
projects can provide a renewable energy option requiring relatively less land and avoiding the large-
scale submergence and displacement associated with major reservoir-based projects.

He said Small Hydro Power can provide dependable renewable electricity closer to the point of
consumption, strengthen decentralised generation and contribute to the resilience of the power
system, particularly in geographically challenging regions. The sector can also create employment,
support local enterprises and generate economic opportunities in remote areas while maintaining
sensitivity towards ecology and local communities.

The Minister highlighted the Government’s proposed Small Hydro Power Development Scheme for
the period 2026-27 to 2030-31, with an outlay of ?2,584.60 crore and a target of approximately 1,500
MW of new Small Hydro Power capacity. The Scheme will also incentivise States to prepare Detailed
Project Reports for about 200 projects, thereby creating a pipeline of Small Hydro Power projects for
future development.

The Minister stressed that Government support alone cannot unlock the full potential of the sector
and called for a strong partnership among the Central Government, State Governments, developers,

September 2026 Page | 69