Financial Assistance for Small Hydro Power Projects

Financial assistance is being provided to the States by the Government for the development of small hydro-power projects. The Ministry of New and Renewable Energy is providing Central Financial Assistance (CFA) to set up small / micro hydro projects both in public and private sectors. Financial support is also given to the State Government for identification of new potential sites including survey and preparation of DPRs, renovation and modernization of old SHP projects and water mills. The total funds released under SHP Programme during 2010-11, 2011-12 and 2012-13 were Rs. 151.99 crores, Rs.154.45 crores and Rs.158.92 crores respectively. 

6474 potential SHP sites with an aggregate capacity of 19,749 MW have been identified in the country. 

So far, 985 small hydro power projects with an aggregate capacity of 3754 MW have been setup and 265 projects aggregating to 945 MW are under implementation in various States. Setting up of SHP projects comes under the purview of State Government and they decide about taking up new projects. 
This information was given by the Minister of New and Renewable Energy Dr. Farooq Abdullah in a written reply in the Lok Sabha.