Indian cities have been forced to ban the use of power equipment from hydro power plants that use large amounts of water and chemicals to grow vegetables and other produce.
The Indian government has also banned hydropower plants that produce carbon dioxide, as well as large amounts that are used to produce fertilisers.
The new policy will take effect in Delhi from Thursday.
It comes after the Delhi High Court ordered the closure of all such plants in January.
It said hydropowers were harmful to human health and environment and had no scientific basis.
The decision was criticised by environmentalists, who said it could put the livelihoods of people in the region at risk.
India has over 100 hydropowered plants, and many are operating for decades.
The government said the ban would not affect the existing power infrastructure.
The ban came as the Centre and states are preparing for the World Food Prize to be awarded to the country next month.
The prize is to be held at the US embassy in New Delhi, and will be the first time India will be awarded the prestigious award.
India’s hydropoietic sector is estimated to be worth $3.2bn (US$2.8bn) and the country’s food sector is worth $1.2tn (US $735bn).