Arunachal Pradesh Chief Minister Pema Khandu has expressed his support for the Union Cabinet’s approval of the Small Hydro Power (SHP) Development Scheme for the period of 2026-31. He emphasized the scheme’s potential to advance clean energy initiatives and bolster rural economies specifically within the Northeast region of India. Khandu highlighted the immense, untapped energy potential of the region’s rivers, noting that enhanced financial assistance directed toward hilly and border areas could facilitate the generation of clean, decentralized energy in remote regions. He stated that small hydro projects extend beyond mere energy production; they foster local employment, contribute to sustainable development, and enhance infrastructure in frontier areas without the need for large-scale displacement of communities.
Khandu articulated a vision for the scheme to serve as a transformative force for rural economies and local communities, asserting that with effective planning and execution, the SHP Development Scheme could position Arunachal Pradesh as a leader in sustainable hydropower. The approved initiative will provide financial support for small hydro projects ranging from 1 to 25 MW capacity, particularly in Northeastern States and districts bordering international territories. The central financial assistance allocated amounts to Rs.3.6 crore per MW or 30 percent of the project’s total cost, capped at a maximum of Rs.30 crore per project, thereby promoting investment and development in this critical infrastructure area.
