Speaking at an event on small hydropower here, he highlighted the long lead time in starting hydropower projects as a key challenge in their development, noting that delays in obtaining forest, environment and right-of-way clearances adversely impact timely project execution.
"Emphasising the need to improve the bankability of small hydropower projects, the secretary said that their unique cash-flow profile necessitates access to long-term patient capital," the ministry said in a statement.
Sarangi also urged the Indian Renewable Energy Development Agency (IREDA) to take the lead in working with banks and multilateral development institutions, including the Asian Development Bank (ADB) and the World Bank, to facilitate greater availability of patient capital for project developers.
Speaking at the same event, Minister of State (MoS) for New and Renewable Energy Shripad Yesso Naik said India’s small hydro potential currently stands at 21 gigawatts (GW) across 7,100 sites, of which only about 5.2 GW has been harnessed, noting that this represents a huge opportunity for development.
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The scheme will also incentivise states to prepare detailed project reports for about 200 projects, thereby creating a pipeline of small hydropower projects for future development.
The minister highlighted that India has crossed the milestone of 300 GW of installed non-fossil-fuel capacity and that the strength of the country's energy transition lies in building a diverse, balanced and resilient energy portfolio suited to its geography, resources and development needs.
