Renewable Energy · Karnataka
Small Hydro Subsidy in Karnataka
Small Hydro
NABARD Unit Cost for Small Hydro in Karnataka
Government-approved benchmark amount for renewable energy financing
Small Hydro — per MW
Eligibility for Small Hydro Subsidy in Karnataka
Who can apply
- Individual farmers with land records (7/12, patta, or registered lease deed) in Karnataka
- Farmer Producer Organisations (FPOs) and Self-Help Groups (SHGs)
- Agri-entrepreneurs and cooperatives for commercial-scale investments
- SC/ST farmers and women farmers (eligible for enhanced subsidy component of 5–10% additional)
Specification note
This unit cost applies specifically to: per MW. If your investment differs in scale or configuration, ask your bank to identify the nearest applicable NABARD benchmark.
How to Apply for Small Hydro Subsidy in Karnataka
Step-by-step process
- Prepare a Detailed Project Report — Use the NABARD unit cost of ₹6,00,00,000 – ₹7,00,00,000 as the benchmark for a per MW investment.
- Visit your bank in Karnataka — Bring Aadhaar, land records (7/12 or patta), and the DPR to a nationalised bank, RRB, or PACS branch.
- Scheme linkage — The bank will link your application to PM KUSUM.
- Technical verification — A department officer inspects the asset after installation and submits a verification report to the sanctioning authority.
- Subsidy credit to loan account — The capital subsidy is deposited directly into your loan account, reducing the outstanding principal. Total processing time: 30–60 days.
Relevant central schemes:
More Renewable Energy Subsidies in Karnataka
View all Renewable Energy activities in Karnataka →More Subsidy Categories in Karnataka
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Frequently Asked Questions
What is the NABARD subsidy amount for Small Hydro in Karnataka?
The NABARD unit cost for Small Hydro in Karnataka is ₹6,00,00,000 – ₹7,00,00,000 (specification: per MW). This is the benchmark amount banks use when sanctioning a term loan for this activity. The actual subsidy you receive depends on the scheme — typically 25–50% of the unit cost.
What does "per MW" mean for Small Hydro?
The specification "per MW" defines the exact scale or parameters of the investment — such as area in hectares, capacity in litres per day, number of animals, or structural dimensions. NABARD unit costs are tied to this specification; a different scale may have a different unit cost. If your project differs, ask your bank to use the nearest applicable NABARD benchmark.
How do I apply for the Small Hydro subsidy in Karnataka?
Step 1: Prepare a DPR for Small Hydro using the NABARD unit cost of ₹6,00,00,000 – ₹7,00,00,000 as the benchmark. Step 2: Visit a nationalised bank or RRB in Karnataka with land records, Aadhaar, and the DPR. Step 3: The bank appraises and routes the subsidy claim through the Renewable Energy department. Step 4: After physical verification, the subsidy is deposited into your loan account. Total processing time is typically 30–60 days.
Which government scheme covers Small Hydro in Karnataka?
Small Hydro falls under the Renewable Energy category. Relevant central schemes include various NABARD-refinanced schemes. Check the Apply section below for the specific portal and nodal department in Karnataka.
Which state gives the highest subsidy for Small Hydro?
Karnataka offers ₹6,00,00,000 – ₹7,00,00,000 for Small Hydro, which is among the higher rates across Indian states. The compare table below shows the exact amount in each state where NABARD has published a unit cost for this activity.
What is the loan repayment period for Small Hydro financing in Karnataka?
NABARD-linked term loans for renewable energy investments like Small Hydro typically have a repayment period of 5–9 years (including a moratorium of 1–2 years). The moratorium aligns with the gestation period of the investment — for example, a fruit orchard may take 3 years to yield income, so repayment begins after that. Exact tenure depends on your bank and the specific scheme.