SRINAGAR, Mar 20 : The Union Cabinet has approved a Rs 2,584.60 crore Small Hydro Power (SHP) Development Scheme aimed at adding nearly 1,500 MW of capacity nationwide, with special focus on Jammu and Kashmir and Ladakh. The move is expected to boost power generation in hilly and border regions, tapping into the abundant rivers and streams that remain largely underutilized.
Under the scheme, the Centre will provide financial support of up to 30 per cent of the project cost or Rs 3.6 crore per MW, whichever is lower, for small hydro projects of up to 25 MW capacity. The projects will mainly follow a run-of-river model, avoiding large dams and displacement.
For Jammu and Kashmir, which faces a significant power deficit and spends over Rs 8,000 crore annually on electricity purchases, the scheme could ease financial pressure and strengthen local generation. Ladakh, which also incurs high energy costs, is expected to benefit from decentralized power production in remote areas.
The UTs’ abundant water resources, particularly in tributaries of the Indus, Chenab, and Jhelum, can be harnessed effectively through small hydro projects to meet local demand and reduce dependence on external supply. Small hydro projects, unlike large dams, are quicker to implement, better suited for scattered settlements, and reduce the need for long transmission lines, cutting losses.
The scheme also allocates Rs 30 crore for preparing detailed project reports (DPRs) for around 200 prospective sites, creating a pipeline of future projects. Officials said the rollout could generate substantial employment during construction and in operations, with over 50 lakh person-days of employment expected nationwide, particularly in hilly regions like J&K and Ladakh.
The push for small hydropower coincides with ongoing efforts to revive stalled projects in the region and enhance capacity through desilting and site identification for additional plants, as highlighted by Union Power Minister Manohar Lal Khattar. (Agency)
