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Karnataka's 386 Small Hydel Project Cancellations Highlight Environmental Hurdles for Centre's ₹2,584 Cr Push

EconomyEnvironmentInfrastructurePolityHIGH
Target:UPSC GS-IIIMPSCTeachingSSC GAPrelims HighMains HighStatic GK Link
28 Jun 2026
~2 min
Source: Indian Express
Key Data:386 cancelled out of 5191284 MW installed capacity₹2,584 crore impetus1500 MW target5179 MW India small hydro21,133 MW potential
Bodies:KREDLMinistry of New and Renewable EnergyNational Council of Applied Economic Research
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What This Article Covers

1.Karnataka leads India in small hydel installed capacity (1284 MW) but has 386 of 519 allotted projects cancelled, with only 108 commissioned yielding 943 MW.

2.Centre announced ₹2,584 crore impetus in March 2026 to facilitate 1500 MW small hydro capacity amid fuel shortage due to West Asia crisis.

3.Major cancellations occurred in 2022-23 (220 of 225 projects) primarily due to lack of environmental clearances in Western Ghats; a key examiner focus area.

The Big Picture
Prelims · HighMains · High

Karnataka, India's top small hydel power state with 1284 MW installed capacity, has seen 386 out of 519 allotted projects cancelled, mainly due to forest clearances in Western Ghats. This serves as a caution for the Centre's new ₹2,584 crore push for small hydro projects to add 1500 MW. The high cancellation rate underscores the need for robust environmental clearance mechanisms and project viability checks.

Exam Lens

Quick Exam Facts From News

Karnataka Small Hydel Installed Capacity1284 MW (133 projects)
Total Allotted Projects519
Cancelled Projects386
Commissioned Projects108 (943 MW)
Centre's New Impetus₹2,584 crore for 1500 MW small hydro
India's Total Small Hydel Installed5179 MW (as of May 31)
Second Highest State (HP)1013 MW
India's Assessed Small Hydro Potential21,133 MW across 7,133 sites

1-Minute Revision

  • ›Karnataka Small Hydel Installed Capacity: 1284 MW (133 projects)
  • ›Total Allotted Projects: 519
  • ›Target this Data: 386 cancelled out of 519 allotted small hydel projects in Karnataka; 1284 MW installed capacity.
  • ›Target this Nodal Body: Karnataka Renewable Energy Development Limited (KREDL) – state nodal agency for renewable energy.
  • ›Target this Legal Point: Environmental clearance requirement under Environment Protection Act, 1986 – main reason for cancellation.

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Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which state-level agency is responsible for small hydel power project allotments in Karnataka as per the article?

Q2Statement-basedHard

Consider the following statements regarding small hydel power projects in Karnataka:

1. As of May 31, only 108 out of 519 allotted projects were commissioned.

2. The majority of cancelled projects were located in the Western Ghats and failed due to environmental clearance issues.

3. Karnataka ranks second in India in terms of installed small hydel capacity after Himachal Pradesh.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to KREDL data, how many small hydel projects were allotted in Karnataka during 2022-23, and how many of those were cancelled?

Q4Application/ImpactMedium

What is the primary objective of the Centre's new ₹2,584 crore impetus for the small hydro sector announced in March 2026?

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