The country has a small-hydro power (SHP) potential of about 15.4 GW. Of this, only 22 per cent (3.4 GW) was developed as of March 2012. The main reason for the slow growth is the lack of funding opportunities for the segment owing to the risks and challenges associated with SHP project development. These include a long gestation period, the lack of large developers and the absence of a strong regulatory framework.