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Home » Odisha Targets Clean Energy Expansion with Small Hydro Push

Odisha Targets Clean Energy Expansion with Small Hydro Push

State aligns with MNRE’s Rs 2,584-crore Small Hydro Scheme, backing capacity expansion with a Rs 16,000-crore transmission grid overhaul.

Prachiparna Nayak by Prachiparna Nayak
September 11, 2026
in Odisha
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Odisha Small Hydro Power Potential
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Odisha took a decisive step toward expanding its clean energy infrastructure today as the Energy Department, Government of Odisha, and GRIDCO Limited—alongside knowledge partner iFOREST—hosted a high-level Stakeholder Dialogue at the Mayfair Convention Hall.


Bringing together policymakers, project developers, financiers, and sector experts, the consultation focused on fast-tracking the implementation of the Ministry of New and Renewable Energy’s (MNRE) Small Hydro Power Development Scheme (2026–27 to 2030–31). With India having tapped only 5,171 MW of its estimated 21,133 MW small hydro potential, the dialogue aimed to convert national policy guidelines into a concrete, investment-ready pipeline for the state.

The newly launched Rs 2,584.60-crore national scheme targets 1,500 MW of new small hydro capacity across roughly 200 projects nationwide, backed by Rs 30 crore dedicated to Detailed Project Report (DPR) preparation. Odisha, which holds nearly 11% of India’s surface water resources, is positioning itself to leverage this central support to diversify its predominantly thermal-heavy generation portfolio.

Key Metric / Parameter National / State Target
National MNRE Scheme Outlay Rs 2,584.60 Crore
Target Small Hydro Capacity (India) 1,500 MW (approx. 200 projects)
National Small Hydro Potential 21,133 MW (Only 5,171 MW tapped)
Odisha Water Resource Share ~11% of India’s surface water
State Grid Overhaul Budget ~Rs 16,000 Crore (Approved by Cabinet)

To ensure seamless grid integration for upcoming renewable assets, the State Government has planned an investment of approximately Rs 16,000 crore. Recently approved by the State Cabinet, this infrastructure push will expand transmission networks across the state, including the introduction of three new 765 kV transmission corridors.

Inaugurating the session, Deputy Chief Minister Kanak Vardhan Singh Deo highlighted that small hydro projects offer significant environmental and operational advantages by utilizing existing canal networks and natural water flows without requiring large-scale land acquisition.

Additional Chief Secretary (Energy) Vishal Dev emphasized that the state is actively shaping the regulatory, financial, and inter-departmental ecosystem required to convert raw potential into bankable projects.

The event concluded with the signing of a landmark Renewable Energy banking agreement, setting the stage for an official action roadmap focused on priority site selection, streamlined clearances, and community benefit-sharing. High-level dignitaries in attendance included Principal Secretary (FE&CC) and CMD OPTCL Bhaskar Jyoti Sarma, GRIDCO Managing Director Dr. Satya Priya Rath, and iFOREST Director (Program Development) Mandvi Singh.

Tags: GRIDCOHydroelectric EnergyiFORESTKanak Vardhan Singh DeoMNRE SchemesOdisha Energy
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