The very concept of generating power from water is based on the advent of innovative technologies which make hydropower a low-cost form of energy requiring lower investment in infrastructure. Moreover, power stations are designed innovatively, at strategic locations on a river or canal from where water can effectively be harnessed for power generation.


Today, Hydropower is the world’s largest source of clean, green and renewable energy. It is eco-friendly. It does not emit harmful gases or effluents. In a world filled with concerns about Climate Change, Carbon Emissions and rapidly depleting fossil fuel reserves, hydropower offers a viable alternative for the future.


The biggest strength of hydropower is that it is sustainable – socially, environmentally, technologically and economically. It protects and revives fragile ecosystems; it generates employment opportunities; it fosters the creation of rural infrastructure and amenities; and it preserves water quality, local habitats and existing livelihoods.

Key Benefits

Here are some of the key benefits that make small scale hydropower projects better than large scale ones:

  • Economically viable since they require low levels of investment
  • An Eco-friendly and Renewable source of energy
  • Generates employment among the local populace
  • Acts as a catalyst for local infrastructure

There are also several revenue-oriented benefits; these include:

  • Commissioned Projects have received capital subsidy from Ministry of Renewable Energy.
  • Commissioned projects are entitled to a 10-year tax holiday (Under section 80IA of the Income Tax Act)
  • No Goods & Services Tax (GST) applicable on sale of electricity
  • Low rates of interest
  • Projects are eligible for promotion under REC
  • Projects can be certified under the Clean Development Mechanism (CDM) of the United Nations Framework Convention on Climate Change (UNFCCC)