Gujarat Small Hydel Policy 2016 Policy Operative Period - 2016 to 2021


For preserving environment and for promotion of clean energy, the State Government's vision is to promote, support, facilitate and incentivize investments in Sma|| Hydel Projects in the State.


  • To promote renewable and clean source of electricity to reduce carbon emissions through Small Hydel Projects
  • To promote setting up of Small Hydel Projects on canal System, rivers and streams to harness untapped clean energy
  • To reduce dependency on depleting fossil fuel reserves for energy security and sustainability
  • To promote investment, employment generation & skill enhancement in renewable energy sector
  • To encourage research and development and innovative technologies in Small Hydel Projects
  • To create environmental consciousness among citizens

Policy features:

  • Projects to get benefits for 35 years
  • Projects up to 25 MW will be covered under this policy (projects with higher capacity-fall under Govt. of India Policy).
  • Project developer will be selected in a transparent way by inviting bids by Sardar Sarovar Narmada Nigam Ltd., Water Supply Dept. etc authorities having control on dams/canals.
  • 100% Exemption from ED.
  • 50% concession in wheeling charge, distribution loss to the captive power plant.
  • Cross subsidy surcharge-additional subsidy surcharge: 100% exemption to captive plants.
  • Cross subsidy surcharge-additional subsidy surcharge-50% concession to projects for third party sale. 
  • State Utilities may purchase such power if they require the same for meeting their RPO at the tariff fixed by GERC or through competitive bids.

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