The Ministry of Power has prepared a draft proposal on New Hydro Policy 2017 for revival of Hydro Power Sector. The proposal inter-alia seeks to declare all hydro power as renewable energy, irrespective of its size; Hydro Power Obligation benefit to projects attaining COD within specified period; interest subvention during construction/post commissioning with funding pattern on grant basis.

Hydro Power, irrespective of the capacity of the Hydro Power project, is considered as renewable energy source internationally. In India, to give specific focus to small hydro projects, hydro power projects up to 25 MW station capacity are allocated with the Ministry of New and Renewable Energy, and are monitored as a separate segment in the renewable energy. The hydro power projects of capacity more than 25 MW are dealt by the Ministry of Power. The Ministry of Power has prepared a draft proposal on New Hydro Policy, 2017 for revival of Hydro power Sector which, inter-alia, seeks to declare all hydro power as renewable, irrespective of its size.