Overview

• The Cabinet cancelled 172 small hydro projects under 5 MW and 22 larger schemes that had stalled or lacked signed implementation agreements.
• Future allocations of projects up to 5 MW will carry a free power royalty of 12% plus a 1% Local Area Development Fund levy.
• Developers have until August 5, 2025 to submit responses to the Cabinet’s show-cause notices or risk forfeiture of their rights.
• A special committee will negotiate out-of-court settlements with 14 developers to refund their upfront premium payments without interest.
• The state plans to re-advertise the small schemes through HIMURJA to accelerate renewable energy capacity and reinforce project accountability.