Odisha Targets Small Hydro Expansion as State Eyes Untapped Renewable Energy Potential

Bhubaneswar: Odisha is looking to accelerate the development of small hydropower projects as the state seeks to diversify its largely thermal-based energy portfolio and tap its significant water resources.

The Energy Department, GRIDCO Limited and knowledge partner iFOREST on Thursday held a stakeholder dialogue at Mayfair Convention Hall to work out an investment-ready pipeline for small hydro projects under the Ministry of New and Renewable Energy’s Small Hydro Power Development Scheme for 2026-27 to 2030-31.

The dialogue brought together policymakers, project developers, financial institutions and energy sector experts, with discussions centred on identifying priority sites, simplifying approvals, mobilising investment and ensuring community participation in future projects.

The ₹2,584.60-crore national scheme aims to add 1,500 MW of small hydro capacity through around 200 projects across the country. It also provides ₹30 crore towards preparation of Detailed Project Reports (DPRs), creating an opportunity for states to develop projects that can move towards implementation.

India currently has an estimated small hydro potential of 21,133 MW, of which only around 5,171 MW has been tapped. Odisha, which accounts for nearly 11 per cent of India’s surface water resources, intends to use the central scheme to expand its renewable energy base.

Inaugurating the dialogue, Deputy Chief Minister Kanak Vardhan Singh Deo said small hydro projects offer environmental and developmental benefits as they can make use of existing irrigation canals and water flows, reducing the need for extensive land acquisition.

The state is also preparing to strengthen its transmission network to support the integration of additional renewable power. An investment of around ₹16,000 crore has recently received Cabinet approval for expansion of transmission infrastructure, including three new 765 kV networks across Odisha.

Additional Chief Secretary, Energy, Vishal Dev said Odisha was working to create the regulatory, financial and institutional framework required to convert the state’s hydropower potential into viable and bankable projects.

The stakeholder dialogue concluded with the signing of a Renewable Energy banking agreement, which is expected to support the development of an action roadmap for small hydro projects. The roadmap will focus on priority site identification, faster clearances and mechanisms for sharing benefits with local communities.

Principal Secretary, Forest, Environment and Climate Change and CMD, OPTCL, Bhaskar Jyoti Sarma; GRIDCO Managing Director Dr Satya Priya Rath; Director, Programme Development, iFOREST, Mandvi Singh and other senior officials and sector representatives attended the dialogue.

The initiative is expected to provide a platform for closer coordination among the government, developers, financiers and technical experts as Odisha moves to expand its renewable energy capacity through small hydro and other clean-energy sources.