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Gujarat Small Hydel Policy 2016

Clean and renewable power can be generated from rivers, streams and canals through small, mini and micro hydro electricity projects and there are lots of water bodies in Gujarat. Therefore Gujarat Govt. has introduced “Gujarat Small Hydel Policy” to promote, support, facilitate and incentivize investments in small hydel projects in Gujarat.


  • To promote renewable and clean source of electricity to reduce carbon emission through small hydel projects.
  • To promote employment generation, skill enhancement and investment in Renewable Energy Sector.
  • To reduce dependency on depleting fossil fuel reserves for energy security and sustainability.
  • To encourage research and development and innovative technologies in small hydel projects.
  • To create environmental consciousness among citizens.

Period of Operation:

The policy will came into effect from the date of its notification and shall remain in operation for period of 5 years i.e. 2016 to 2021.

Eligible Unit:

  • Any individual, company, association or group of individuals, whether incorporated or not, or artificial juridical person can set up Small Hydrel Projects either for the purpose of captive use or for sale to obligated entities or to any other third party.

Nodal Agency:

Gujarat Energy Developer Agency (GEDA) shall be the State Govt. Nodal Agency for the facilitation and implementation of the policy.


  • Sites will be allotted to project developer after consulting with the concerned Govt. Authorities.
  • Electricity generated and consumed for self consumption/sale to third party within the State shall be exempted from payment of electricity duty.
  • Exemption from demand cut to the extent of 50% of installed capacity of the Small Hydel Project in case of captive consumption and third party sale with the State, will be provided to the developer.

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