Government of India and State Government's Incentives for Small Hydro Power Projects (SHPs)

Government of India and State Government's Incentives for Small Hydro Power Projects (SHPs)

• The government has permitted a minimum of 14% return on investment.
• The government has permitted private sector to participate in power generation through the implementation of the Indian electricity act 2003.
• The MNES supports SHP development, both in the government and private sectors. Apart from the financial support to new, renovation and modernization (R&M) of existing SHP stations and government projects that have been developed for the promotion of SHP programmes in the northern-eastern states, Jammu and Kashmir, Himchal Pradesh, and Uttaranchal.
• Soft loan by Indian renewable energy development agency.
• Subsidy of MNRE for renewable projects