Arunachal Pradesh Chief Minister Pema Khandu has expressed strong support for the Union Cabinet’s approval of the Small Hydro Power (SHP) Development Scheme for 2026-31. He emphasized the significance of this initiative for promoting clean energy and enhancing rural economies in the Northeast, particularly in Arunachal Pradesh, where rivers possess considerable untapped potential. Khandu noted that the scheme would provide enhanced financial backing for hilly and border areas, enabling the development of clean, decentralized energy in remote locations. He highlighted that small hydro projects facilitate not only power generation but also local employment, sustainable development, and infrastructure improvement in remote frontier areas, without causing significant displacement. Khandu believes that, with effective planning and implementation, this scheme has the capacity to transform rural economies, empower local communities, and position the region as a leader in sustainable hydropower. The Union Cabinet has approved assistance for small hydro projects ranging from 1-25 MW capacity, offering central financial support of Rs.3.6 crore per MW or 30% of the project cost, with a maximum limit of Rs 30 crore per project, specifically for Northeastern States and districts along international borders.
