New Delhi, August 28: The Union Cabinet chaired by Prime Minister Narendra Modi has approved a ₹4,136 crore proposal to enhance hydropower development in the North Eastern Region (NER) of India. The decision will provide Central Financial Assistance (CFA) to the regional state governments for their equity participation in hydropower projects.
The scheme is designed to support the development of a total hydropower capacity of about 15,000 MW through joint ventures between state entities and Central Public Sector Enterprises (CPSEs). The funding will be allocated from the total budget of the Ministry of Power from 10% Gross Budgetary Support (GBS) for the North Eastern Region.
SJVN Ltd has already signed Memorandum of Understanding (MoA) with the Government of Arunachal Pradesh to develop five critical run-of-the-river hydropower projects. These projects include:
- Etalin (3,097 MW)
- Attunli (680 MW)
- Emini (500 MW)
- Amulin (420 MW)
- Mihumdon (400 MW)
The Etalin and Attunli projects are currently in advanced stages of approval and are expected to involve an investment of about ₹44,000 crore. On completion, they will together contribute about 15,787 million units of electricity annually.
The approved scheme includes a limit of 24% for the equity share of state governments in the total project equity, up to a maximum of ₹750 crore per project. This limit can be adjusted on a case-by-case basis if required. The scheme aims to maintain a balanced equity ratio between CPSEs and state governments while disbursing grants.
This initiative will encourage greater state government participation in hydropower development, leading to fair distribution of risks and responsibilities. By involving state governments as stakeholders, the scheme is expected to address issues such as land acquisition, rehabilitation, resettlement and local law and order, thereby minimising potential delays and cost overruns.
The scheme is expected to have a transformational impact on the Northeast region, attracting substantial investments and creating numerous direct and indirect employment opportunities. It will also contribute significantly to India’s Nationally Determined Contribution (INDC) target of achieving 500 GW of renewable energy capacity by 2030, thereby enhancing the reliability and resilience of the national electricity grid.
Once operational, these hydropower projects will spur extensive socio-economic development in Arunachal Pradesh. They are set to improve infrastructure, healthcare services and educational opportunities, as well as provide employment and support sustainable development.
The MoUs recently signed by the Arunachal Pradesh government with various CPSEs including NHPC, NEEPCO, SJVN and THDCIL for development of 13 hydropower projects totalling 12.7 GW are even more aligned with this plan. The introduction of central financial assistance for equity participation is a significant step towards furthering the hydropower sector in the Northeast and moving towards a developed India or “Viksit Bharat”.
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