India’s Ministry for New and Renewable Energy (MNRE) is in talks with France’s AFD (French Development Agency) to enhance cooperation on small hydropower projects. MNRE is exploring opportunities to promote small hydro projects with a capacity of 25 MW or under. Small hydro projects are considered environmentally friendly as they do not produce methane and avoid large-scale displacement of local communities. AFD, which has experience in hydro projects in Himachal Pradesh, has been active in promoting renewable energy in India, focusing on solar power, hydroelectricity, and energy efficiency. The collaboration aims to tap into France’s expertise in small hydropower, given its potential and minimal environmental impact. AFD has previously provided financial assistance for hydropower plants in Himachal Pradesh and is actively involved in initiatives like the Green Indian Financial System to promote green finance in India. Despite India’s significant hydropower potential, a relatively small percentage has been developed, and efforts are underway to increase utilization. Solar power remains a key focus for AFD in India, as indicated by its partnerships and initiatives in the sector.