Small Hydro / Micro hydel projects / Watermills

The rural energy scenario in India is characterized by inadequate and unreliable supply of energy services.  Micro hydel Projects and Watermills can provide a solution for the energy problem in rural, remote and hilly areas where extension of grid system is comparatively uneconomical.

A number of mini/micro hydro projects have been set up in remote and isolated areas. A number of tea garden owners have also set up such micro hydel projects to meet their captive requirement of power.

Local organizations such as the Water Mill Associations, cooperative societies, registered NGOs, local bodies are being encouraged to install watermills in their areas. A number of NGOs are now propagating water mills for electricity generation to meet small scale electrical requirements of villages. The water mills costs approx. 2 lakhs/KW.

Subsidy  for Watermills and Micro Hydel Projects:

(a) Watermills:

  1. Mechanical output only – Rs. 35,000/- per Watermill
    1. Electrical output (up to 5 kW) – Rs. 1,10,000/- per Watermill
    2. Both mechanical &  electrical output (up to 5 kW) – Rs. 1,10,000/- per Watermill
  2. Micro Hydel Projects up to 100 kW Capacity  – Rs.40,000/- per KW


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