Issuing authority: Ministry of New and Renewable Energy
To address long-standing implementation challenges in the small hydro sector, MNRE has revised its 2009 and 2014 guidelines for Small Hydro Power (SHP) schemes. Key updates include changes to the eligibility criteria for release of Central Financial Assistance (CFA), now allowing disbursement if a project achieves 80% of the projected generation in any single corresponding month, as opposed to the earlier requirement of three consecutive months. A grace period of 12 months for project commissioning remains, but delays beyond that will now reduce CFA support by 5% per quarter, up to a maximum of 50%. Additionally, the performance verification process and required documentation for CFA release have been made more stringent, with mandatory third-party inspection for projects above 1 MW and updated norms for project completion and extension timelines.
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