THEBUSINESSBYTES BUREAU

BHUBANESWAR, SEPTEMBER 11, 2026

Odisha on Friday unveiled an investment-oriented roadmap to unlock its substantial small hydro power potential, as the state government stepped up efforts to diversify its largely thermal-based power generation mix and accelerate clean energy deployment.

The Energy Department of the Odisha government and GRIDCO Limited, in collaboration with knowledge partner iFOREST, hosted a high-level stakeholder dialogue here to fast-track implementation of the Ministry of New and Renewable Energy's (MNRE) Small Hydro Power Development Scheme for 2026-27 to 2030-31.

The dialogue brought together policymakers, project developers, financiers and sector experts with a focus on translating the central government's policy framework into a concrete and investment-ready project pipeline for the state.

India has so far harnessed only 5,171 MW of its estimated 21,133 MW small hydro potential, highlighting significant scope for further development in the sector.

The newly launched national scheme, with an outlay of Rs 2,584.60 crore, seeks to add 1,500 MW of small hydro capacity through around 200 projects. It also provides Rs 30 crore towards preparation of Detailed Project Reports (DPRs), aimed at creating a stronger pipeline of viable projects.

Odisha, which accounts for nearly 11 per cent of India's surface water resources, plans to leverage the central scheme to tap its water resources and strengthen its renewable energy portfolio.

The state has also secured Cabinet approval for an investment of around Rs 16,000 crore to expand its transmission infrastructure. The planned network expansion includes three new 765-kV transmission networks and is aimed at ensuring smoother integration of additional power capacity into the grid.

Inaugurating the session, Deputy Chief Minister and Energy Minister Kanak Vardhan Singh Deo said small hydro projects offer significant environmental and developmental benefits as they can utilise existing irrigation canals and water flows without requiring extensive land acquisition.

Additional Chief Secretary, Energy, Vishal Dev said the state was working to build the necessary regulatory, financial and institutional ecosystem to convert its untapped hydro potential into bankable investment opportunities.

The stakeholder dialogue concluded with the signing of a landmark Renewable Energy banking agreement, paving the way for a formal action roadmap covering priority site identification, streamlined project clearances and mechanisms for community benefit-sharing.

Principal Secretary, FE&CC and CMD, OPTCL Bhaskar Jyoti Sarma, GRIDCO Managing Director Satya Priya Rath, iFOREST Director, Programme Development, Mandvi Singh and other senior officials and sector stakeholders attended the dialogue.