Small Hydro Power (SHP) Programme
Ministry of New and Renewable Energy capital subsidy scheme for setting up small hydro power stations up to 25 MW capacity.
₹Benefits & Entitlement Breakdown
📊Budget Allocation & Beneficiary Reach
Committed component under MNRE Grid Interactive Renewable Power Outlay
Official Budget Document ↗Over 1,180 Small Hydro Power projects commissioned with cumulative capacity of 5,000+ MW
As of: 2026-01-31PIB / Official Citation ↗Verified Eligibility Criteria
State government agencies, public sector undertakings, and private independent power producers (IPPs) developing run-of-the-river hydro plants up to 25 MW.
Required Documents Checklist
Verify readiness before applying for Small Hydro Power (SHP) Programme. Check off your papers or print this list before visiting your local CSC / Cyber Cafe.
Mandatory Documents(3)
Check off as readyKeep self-attested photocopies and clear digital scans (100 KB – 200 KB, PDF/JPG format) ready to avoid portal upload timeouts.
Worried About Application Rejection for Small Hydro Power (SHP) Programme?
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Application Effort & Process Friction
Readiness assessment derived from official prerequisites, mandatory documentation, and submission channels.
Effort scores reflect portal accessibility, mandatory document burden, and physical verification requirements.
How to Apply
- 1
State power departments or private developers formulate Detailed Project Report (DPR) with hydrological river run-off data.
- 2
Submit project application on the MNRE Renewable Energy portal.
- 3
Water Resources Department / Irrigation Department accords river water drawal clearances.
- 4
Project Appraisal Committee in MNRE approves CFA sanction.
- 5
Subsidy disbursed in tranches: 50% upon 50% physical execution and remaining 50% upon successful continuous commercial generation.
✅Before You Begin — Pre-Application Checklist
⚠️Common Rejection Reasons — Avoid These
Plants exceeding 25 MW capacity (classified as large hydro), environmental non-compliance, or projects without guaranteed grid off-take.
Official Government Application Portal
You will be redirected to the secure official portal: mnre.gov.in
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Field-tested recommendations from administrative grievance circulars to avoid rejections and processing stalls.
Frequently Asked Questions (Officially Sourced)
Verified answers sourced directly from official circulars, gazettes, and portal FAQs. Never AI-invented.
What is the definition of Small Hydro Power in India?
Hydroelectric power projects with station capacity up to and including 25 MW are categorized as Small Hydro Power (SHP) under MNRE.
Source: Official Scheme FAQ ↗What is the maximum capital subsidy for an SHP project in hilly states?
Special category and North Eastern states receive CFA up to ₹7.5 Crore per MW, subject to a maximum ceiling of ₹20 Crore per project.
Source: Official Scheme FAQ ↗Can micro-hydro watermills also receive grants under this programme?
Yes, traditional watermills (Gharats) used for village grain milling and micro-electricity generation receive grants up to ₹1.25 Lakh per unit.
Source: Official Scheme FAQ ↗Who is eligible to apply for Small Hydro Power (SHP) Programme?
Eligible applicants must satisfy official government criteria for Small Hydro Power (SHP) Programme. Conditions: State government agencies, public sector undertakings, and private independent power producers (IPPs) developing run-of-the-river hydro plants up to 2.
Source: Official Scheme FAQ ↗Can I track my Small Hydro Power (SHP) Programme application status?
Application status for Small Hydro Power (SHP) Programme can typically be tracked through the official portal at mnre.gov.in using your Aadhaar number, application reference number, or registered mobile number. Alternatively, contact the scheme helpline or visit your nearest Common Service Centre (CSC).
What should I do if my Small Hydro Power (SHP) Programme payment is delayed or rejected?
First, verify your Aadhaar-bank account seeding status on the NPCI mapper (npci.org.in). If seeding is confirmed and payment is still pending, register a complaint on the Central Public Grievance Redressal System at pgportal.gov.in. You may also file an RTI application at rtionline.gov.in to obtain official rejection reasons within 30 days.
Is there an income tax implication for receiving Small Hydro Power (SHP) Programme benefits?
Agricultural income and certain welfare subsidies may be exempt from income tax under Section 10 of the Income Tax Act, 1961. Tax treatment varies by scheme type and beneficiary income level. Consult a certified tax practitioner or visit incometax.gov.in for scheme-specific tax guidance.
Common Rejection Reasons & Warnings
Plants exceeding 25 MW capacity (classified as large hydro), environmental non-compliance, or projects without guaranteed grid off-take.
Editorial Verification & Change Log
| Date | Field | Description / Update | Source Citation |
|---|---|---|---|
| 2026-10-18 | scheme_type | cs | Official Source ↗ |
| 2026-09-21 | initial_verification | Baseline verification of SHP 25 MW threshold, special category capital subsidy ceilings (up to ₹20 Cr), and IIT Roorkee AHEC vetting standards. | Official Source ↗ |
⚖Compare with Similar Schemes
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Application Window & Deadlines
Continuous application submission through State Nodal Agencies for Renewable Energy
🛟Grievance & RTI Channels
Scheme Intelligence
How is this calculated? ↗Verified 7d ago from .gov.in source
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📅Scheme Milestone Timeline
Baseline verification of SHP 25 MW threshold, special category capital subsidy c...
Official Source ↗Schemes You Can Stack With This
Complementary programs with non-conflicting eligibility that you can claim concurrently:
Official Helpline & Nodal Offices
Small Hydro Power Division, Ministry of New and Renewable Energy
Atal Akshay Urja Bhawan, CGO Complex, Lodhi Road, New Delhi, Delhi 110003
Helpline: 011-20849015
Jurisdiction: National (All-India)Notice a Discrepancy?
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Verification Metadata
Last verified by Eligo researchers on 2026-10-12 against official government documentation.
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