Hydel Power Project

To harness the huge potential clean energy, the Government of Arunachal Pradesh is poised to ink agreements with four state-operated power corporations for the development of 13 hydroelectric projects, collectively capable of generating 12,000 MW of hydel based power. The state has confirmed that NHPC, THDC India, North Eastern Electric Power Corporation (NEEPCO), and SJVN will be the official signatories on these contracts.

This ambitious initiative includes five previously stalled projects that were earlier under the ownership of private entities but met with cancellation due to unsuccessful completion. The state-owned NHPC is slated to breathe new life into two of these ventures, the Upper and Middle Subansiri, while NEEPCO will spearhead five, THDC three, and SJVN will oversee the remaining projects, divulged an informed individual.

The Arunachal Pradesh government has expressed its intent to secure a 25-26% equity share in a portion of these projects and has approached the Centre to fund the requisite equity tranche. Meanwhile, the power ministry is engaging with the finance ministry, advocating for a funding scheme tailored specifically for northeastern states. To guard against cess imposition and to maintain a balanced tariff over time, states will be required to accept free electricity in a staggered fashion and may have to offer additional concessions to align the tariff with the benchmark level.

Government data indicates that Arunachal Pradesh harbors a massive hydro power potential of over 50,064 MW for projects exceeding 25 MW. The state currently operates 1,115 MW, with an additional 4,880 MW capacity in the pipeline. This move towards augmenting hydro power capacity aligns with the government’s vision of transitioning towards greener energy sources.

As of April 30, 2023, as per Projects Today data, there were 53 hydel-based power projects in the pipeline, aiming to add new generation capacities of 28,810 MW at an estimated capex of Rs 2,67,508 crore. However, as of date, only five of these projects, with a total capacity of 2,508 MW, are under execution, while the remaining projects are in the preliminary phases of implementation.

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