The developers would be selected through competitive bidding, according to the small hydro electricity policy approved by the cabinet on Wednesday.
The electricity generated by IPP projects would have to be channelled to the state grid of Kerala State Electricity Board (KSEB) while power from the CPP projects could be used by the developers themselves by paying a fixed amount to the state power board.
The projects would be on BOT mode and transferred to KSEB after 30 years of commissioning.
Kannur district in north Kerala has the highest number of 12 projects.
The state had earlier identified as many as 63 projects with a total capacity of 232 MW. But one of them was dropped later on advice from the state Energy Management Centre.
