Government Approves Allocation of Rs 2,585 Crore for Small Hydropower Development Scheme

Government Approves New Policy for Small Hydel Projects

Key Highlights:

• The Union Cabinet has approved a new policy for small hydel projects, aimed at promoting localized power production in the Himalayan states.
• Rs 2,585 crore will be allocated for 1,500 MW of small hydel power projects, with a capacity range of 1 MW to 25 MW.

Market Reaction: Shares of SJVN and NHPC closed in the green on March 18, indicating a positive market reaction to the news.

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Policy Implications: The new policy is expected to tap into the large demand and potential for small hydel power projects in the Himalayan states, promoting localized power production and contributing to the country's renewable energy goals.