The SHP policy expired in February 2022. The policy promotes the development of SHP projects up to 25 megawatt (Mw) capacities. Chhattisgarh has an identified potential of about 1,200 Mw in the SHP.

The state cabinet has also approved the Chhattisgarh State Hydropower Project (Pump Storage Based) Establishment Policy 2022 to encourage investment in establishing pump storage-based hydropower projects in the state. Initially, seven sites have been identified by the generation company for the establishment of pump storage-based hydropower projects of about 10 thousand Mw capacity. Among the selected sites, a study will be conducted to establish the project in Korba, Jashpur, Surguja, Gariaband, Dhamtari, and Balrampur districts.