As part of its target of building the capacity for 175 gigawatt of renewable energy by 2022, the Ministry of New and Renewable Energy (MNRE) will give a policy push to small hydropower.
Comprising power projects of less than 50 megawatt (Mw) and mostly run of the river units, the target of small hydro in the overall mix will be increased to 6,000 Mw. It was earlier 5,000 MW.
The government will also renew central finance assistance (CFA) given to small hydropower projects.
“These incentives expired but they were extended. By the next fiscal year, new incentives would be finalised. The subsidy given