Faced with the twin threats of human-induced climate change and concerns over security of supply, India must find new and sustainable sources of energy to fuel the ever-increasing demand. India generates 20% electricity form hydro power. Micro-hydro generation as a key contributor to future energy supply. It is one of a number of different micro hydro-generation options. Although its true potential has yet to be realised. This study estimates the potential for micro-hydropower generation in the Lower Mahi Basin.HES-RAS software isusedfor simulating the discharge and water head for calculation for power generation. Micro Hydro Power plant provide electricity which is pollution free by means of reducing in environmental hazardous material. Micro Hydro Power also provide water for irrigation, residential, commercial and raw water for water treatment plant. This research only focusses on the theoretical approach of Micro Hydro Power assessment in the study area.