India is endowed with a vast hydropower potential. As per the recent report of CEA, hydro potential in India has been estimated at about 148,000 MW. Only 25% of this potential is under operation and the balance 75% is yet to be tapped. Out of this untapped potential 15000 MW is estimated as Small Hydro Power (>25MW).

During last couple of years Union Government of India and state governments have taken several policy measures to accelerate Small Hydro power development in the country by higher budgetary allocations, Capital subsidy for Small Hydro projects up to 25 MW, Renewable Energy Purchase obligation (10.01% for 2011-12 in HP), Issue of renewable energy certificates (REC) PPP agreements, Self identification of projects for allocation etc. During 12th five year plan (2012-2017) Government has indicated major focus on capacity addition through Small Hydro sector.