Assam has clarified that until its demand for free share of 600 MW of power from the under-construction Lower Subansiri Hydro Electric Project (LSHEP) was met, it won’t sign the memorandum of understanding (MoU) with NHPC Ltd, the developer of the project.
“There is a formula called that Gadgil Formula for allocation of free power by the Centre. Presently, we are being offered 208 MW of power. We demand that at least 600 MW of free power be given to us,” said Assam’s Power Minister Pradyut Bordoloi.
He said that since the state government had not accepted the present allocation of 208 MW, it had not yet signed the MoU with NHPC Ltd. “We will sign the MoU with NHPC only after our demand of 600 MW free power is met,” the Minister added.
However, Bordoloi said that he “has full faith in the central government” and that the demand of Assam government would be met.
Bordoloi also cautioned that opposition to the project from various groups and organisations in the state was leading to cost escalation, which would mean purchasing power at a premium later on.
The 2,000 MW project has been facing stiff opposition in Assam from various groups and organisation for the perceived threat to downstream areas and ecological degradation.
“Opposition and protests were leading to cost escalation of the project. Had there been no cost escalation, we could have purchased power from LSHEP at Rs 2.46 per unit. But, after 2 years we will have to pay Rs 5 for purchasing every unit of power from LSHEP as the project ,” said Bordoloi.
The minister informed that nearly 45 per cent of project work had been completed and NHPC Ltd had already invested to the tune of Rs 15,000 crore in the project. The project is situated at Gerukamukh, along Assam-Arunachal Pradesh border. Significant portion of the project lies in Arunachal Pradesh.
