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Stalled hydropower projects in the state of Arunachal Pradesh, which have seen no progress in the past two decades, could finally see the light of day as the state government has transferred them to central public sector utilities.
These 12 hydroelectric projects, totalling 11 gigawatt (Gw), were awarded to several private companies at least 15 years ago, but none saw any progress.
In a public statement on Saturday, the Union Ministry of Power said the Government of India and the Government of Arunachal Pradesh have come together “to rejuvenate and execute 12 stalled hydroelectric power projects in the state”.
The state government signed memoranda of agreement (MoUs) with three central public sector undertakings: NHPC, SJVN, and NEEPCO, which is now a subsidiary of India’s largest power generator, NTPC.
In the statement, Union Minister for Power, New and Renewable Energy R K Singh said, “The per capita income of the state would become more than that of Maharashtra and Gujarat. All the developed nations, including the US, Canada, Norway, etc., have harnessed 80–90 per cent of their hydropower potential. In India, too, the states that harnessed the potential of hydropower have become prosperous. Hydropower is a green source of energy. Its usage will also increase the groundwater level and promote the growth of flora and fauna.”
Of these 12 projects, five of the 2.6 Gw capacity have been allocated to NEEPCO; another five of the 5 Gw capacity would go to SJVN, and the remaining two of the 3.8 Gw capacity would go to NHPC.
NHPC already has two mega hydropower projects in the state: the 2 Gw Subansiri Lower and the 2.88 Gw Dibang.
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In 2003, the then National Democratic Alliance government announced plans to set up close to 50 Gw of hydropower capacity in the country, of which Arunachal was to build 25–30 GW. The state government, however, went on an MoU-signing spree with private companies to build hydroelectric projects. By 2009, the state had 153 MoUs, totalling 43 Gw. Some of the projects slated to be built by NHPC were also diverted by the state government to private companies.
The Comptroller and Auditor General of India, which investigated these MoUs, criticised the move by the state government. Several companies that signed MoUs with the state never came back to construct the project after raising money in the name of the said MoU.
In each of these MoUs, the state government had a 26 per cent stake but lacked the financial wherewithal to contribute. The lack of state finances, protracted clearance processes, local protests, and environmental concerns stalled the plans of genuine players as well.
In its recent statement, the Union Ministry of Power said, “The development of these projects will contribute towards achieving the declared nationally determined contribution target of 500 Gw of non-fossil energy capacity in India by 2030.”
“Hydropower will also be an effective contributor to the objective of achieving net-zero carbon emissions by the year 2070,” it added.
