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Gujarat has rivers, streams and large canal network which could be used for generation of clean and renewable power through small, mini and micro hydroelectricity (hydel) projects, or `Small Hydel Project'. However, only a small portion of the potentials in the state have so far been tapped. Construction of small hydel projects and generation of power could be done without causing damage to the environment. The Government of Gujarat desired to promote investments to harness maximum possible clean and renewable energy from these rivers, streams and canals. Therefore, Government of Gujarat introduces "Gujarat Small Hydel Policy - 2016" to provide framework for the state government and its agencies to promote, support, facilitate and incentivize investments in small hydel projects in the state.