The Secretary of the Ministry of New and Renewable Energy (MNRE), S K Sarangi, emphasized that long-term capital is necessary to advance India's small hydropower projects. He noted that delays in obtaining clearances related to forests, environment, and right-of-way negatively affect the timely execution of projects.
Sarangi stated that the country should develop a mechanism to generate and escalate warnings in cases of unjustified delays in implementing small hydropower projects, despite assurances from the Ministry of Environment, Forests and Climate Change (MoEFCC) regarding the timely provision of clearances.
In a statement, the Ministry reported that the Secretary highlighted the need for access to long-term capital, pointing out that the unique cash flow profile of these small hydropower projects requires it.
Furthermore, Sarangi urged the Indian Renewable Energy Development Agency (IREDA) to take the initiative to collaborate with banks and multilateral development institutions, including the Asian Development Bank (ADB) and the World Bank, to ensure greater availability of long-term capital for project developers.
At the same event, the Union Minister for New and Renewable Energy, Shripad Jessa Naik, presented data on India's small hydropower potential, which currently stands at 21 gigawatts (GW) across 7100 sites, with only about 5.2 GW utilized, representing a significant development opportunity.
Naik also outlined the government's proposed Small Hydro Power Development Scheme for the period from 2026 to 2027 to 2030 to 2031, with allocations of ₹2,584.60 crore and a target of 1500 MW of new small hydropower capacity. This scheme will also encourage states to prepare detailed project reports for approximately 200 sites, thereby forming a reserve of small hydropower projects for future development.
The Minister stressed that India has crossed the milestone of 300 GW of installed non-fossil fuel capacity, and the strength of the country's energy transition lies in creating a diverse, balanced, and sustainable energy portfolio that aligns with its geography, resources, and developmental needs.