Covers hilly, border regions including J&K, Ladakh
Srinagar, Mar 19: In a move expected to boost power generation in Jammu and Kashmir and Ladakh, the Union Cabinet approved a Rs 2,584.60 crore Small Hydro Power (SHP) Development Scheme to create nearly 1,500 MW of additional capacity across the country, with a clear focus on hilly and border regions.
As per the Cabinet statement, which lies with Rising Kashmir, the scheme holds particular relevance for the two Union Territories, given their vast network of rivers, streams and mountainous terrain, which remain largely untapped for small hydropower generation.
Under the scheme, the Centre will provide financial assistance of up to 30 per cent of the project cost or ₹3.6 crore per MW, whichever is lower, for setting up small hydro projects of up to 25 MW capacity, it said, adding that the projects will largely follow a run-of-river model, avoiding large dams and displacement.
For Jammu and Kashmir, which continues to face a heavy power deficit and spends over ₹8,000 crore annually on electricity purchases, officials said the scheme could ease financial pressure while strengthening local generation capacity. Ladakh, too, which incurs significant costs to meet its energy demand, is expected to benefit from decentralised power production in remote areas.
“The UTs have abundant water resources, especially in tributaries of the Indus, Chenab and Jhelum. These can be effectively harnessed through small hydro projects to meet local demand and reduce dependence on external supply,” the statement said.
The development assumes added importance as the Centre looks to maximise utilisation of water resources within Indian territory, particularly in border regions. Officials indicated that tapping smaller streams and tributaries could help retain water usage on the domestic side while contributing to energy security.
Unlike large hydropower projects, which often take years to complete and involve high costs, small hydro projects are seen as quicker to implement and better suited for scattered habitations and far-flung areas. Their decentralised nature also reduces the need for long transmission lines, cutting down losses.
The scheme also includes support for preparing detailed project reports (DPRs) for around 200 prospective sites, with an allocation of ₹30 crore for this purpose. This is expected to create a pipeline of projects for future development.
Officials said the rollout of the scheme could generate substantial employment in the region, both during construction and later in operations and maintenance. Nationwide, it is projected to create over 50 lakh person-days of employment, with a significant share expected in hilly regions like J&K and Ladakh.
The push for small hydropower comes at a time when the Centre has already begun identifying new project sites in Jammu and Kashmir. Union Power Minister Manohar Lal Khattar recently said that several stalled projects in the region have been revived, while desilting work is underway in existing plants to restore capacity.
“Site identification for additional projects is ongoing as part of efforts to enhance power generation in the region,” he had said.
