Arunachal targets 19 GW hydropower push with Rs 1.9 lakh crore investment

Itanagar, Feb 5: Arunachal Pradesh has set a target to add 19 GW of hydropower capacity with an estimated investment of Rs 1.9 lakh crore as part of a strategic shift towards large and mega projects, Deputy Chief Minister Chowna Mein informed the Assembly, on Thursday.

Replying to a question by BJP member Tapi Darang during Question Hour, Mein, who also holds the Power and Hydropower portfolios, said the state has declared 2025-2035 as the “Decade of Hydropower” to accelerate development in the sector.

He said Arunachal accounts for nearly 40% of the country's hydropower potential, with 58,000 MW capacity, positioning the state as a key contributor to India's clean energy transition and its net-zero emissions target by 2070.

"With central support, the state is reviving 13 stalled hydropower projects with a combined capacity of 12.2 GW and has signed MoUs with four Central Public Sector Undertakings (CPSUs) in 2023," Mein said.

Of these, three projects - Heo (240 MW), Tato-II (700 MW) and Tati-I (186 MW) - have already received approval from the Cabinet Committee on Economic Affairs (CCEA), with work underway at project sites, he added.

The projects are being developed through joint ventures between the state government and CPSUs, with the state holding a 26% equity stake, Mein said.

"The Centre is supporting the projects by financing 24% equity through Central Financial Assistance (CFA), capped at Rs 750 crore per project. Under this mechanism, CFA support of Rs 6,565 crore will be extended through equity participation," Mein said.

He further added that the state will receive 12% free power from hydropower projects and is expected to earn an estimated revenue of Rs 4,520 crore between 2025 and 2035, rising to about Rs 4,100 crore annually thereafter.

Additionally, the projects are likely to generate around Rs 821 crore per year for local area development, while dividends from the state's equity share are estimated at Rs 1,452.4 crore, the Deputy Chief Minister informed.

The hydropower expansion is also expected to create over 30,000 skilled direct jobs during construction and operation, along with about 16,000 indirect employment opportunities, he added.

Mein informed the House that the hydropower development department has been restructured and made operational, and a policy for restoration of terminated large hydropower projects under special circumstances is in place.

"The government has also proposed a renovate-own-operate-transfer (ROOT) policy for small hydropower projects to attract private investment, optimise asset utilisation and ensure energy security," he said.

The state is revamping its Small Hydropower Policy 2017, to align with technological advancements in the sector, Mein said.

On major ongoing projects, Mein informed that two units with a combined capacity of 500 MW of the 2,000 MW Subansiri Lower Hydroelectric Project have been commissioned, with the remaining three units scheduled for commissioning by March this year.

Full commissioning of all eight units of the project is expected by December this year, Mein said. The 2,880 MW Dibang multipurpose project is under construction and is targeted for completion by February 2032, he added.

PTI