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India Has 21 GW Small Hydro Power Potential, Only 5.2 GW Harnessed: Shripad Yesso Naik

India has around 21 GW of Small Hydro Power potential across more than 7,100 sites, of which only about 5.2 GW has been harnessed, said Shripad Yesso Naik, Minister of State for New and Renewable Energy and Power at the Curtain Raiser of Bharat Renewable Energy Summit and Expo 2026 in New Delhi.

September 11, 2026. By Mrinmoy Dey

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, stated 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 and Expo 2026 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. He said that 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.

Naik further added that 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 Minister highlighted the Government’s proposed Small Hydro Power Development Scheme for the period 2026-27 to 2030-31, with an outlay of INR 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, he said.

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, financial institutions, technology providers and investors. He emphasised the need for policy certainty, streamlined approvals, improved ease of doing business, stronger Centre-State coordination and better bankability of projects.

Santosh Kumar Sarangi, Secretary, Ministry of New and Renewable Energy (MNRE), highlighted the long lead time in starting hydropower projects as a key challenge, noting that delays in obtaining forest, environment and right-of-way clearances adversely impact timely project execution. He said that while MNRE has been assured by the Ministry of Environment, Forest and Climate Change (MoEFCC) of timely clearances, particularly for small hydropower projects, a mechanism should be developed to generate and escalate alerts in cases of undue delays.

Emphasising the need to improve the bankability of small hydropower projects, the Secretary said that their unique cash-flow profile necessitates access to long-term patient capital. He urged the Indian Renewable Energy Development Agency (IREDA) to take the lead in working with banks and multilateral development institutions, including the Asian Development Bank (ADB) and the World Bank, to facilitate greater availability of patient capital for project developers.

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Bharat Renewable Energy Summit 2026

Small Hydro Power Development Scheme

Santosh Kumar Sarangi

MNRE Secretary