Arunachal Pradesh Aims for 19 GW Hydropower Capacity by 2035
Strategic Hydropower Development in Arunachal Pradesh
Itanagar, Feb 5: Arunachal Pradesh has set an ambitious goal to enhance its hydropower capacity by 19 GW, with an estimated investment of ₹1.9 lakh crore. This initiative is part of a strategic shift towards large-scale and mega projects, as announced by Deputy Chief Minister Chowna Mein in the Assembly on Thursday.
During the Question Hour, in response to BJP member Tapi Darang's inquiry, Mein, who oversees the Power and Hydropower portfolios, declared the period from 2025 to 2035 as the 'Decade of Hydropower' to expedite advancements in this sector.
He highlighted that Arunachal Pradesh holds nearly 40% of India's hydropower potential, boasting a capacity of 58,000 MW, thereby positioning the state as a crucial player in India's transition to clean energy and its goal of achieving net-zero emissions by 2070.
With support from the central government, the state is revitalizing 13 previously stalled hydropower projects, which collectively have a capacity of 12.2 GW. In 2023, agreements were signed with four Central Public Sector Undertakings (CPSUs) to facilitate this revival.
Among these projects, three—Heo (240 MW), Tato-II (700 MW), and Tati-I (186 MW)—have received approval from the Cabinet Committee on Economic Affairs (CCEA), and work is currently in progress at their respective sites.
These initiatives are being executed through joint ventures between the state government and CPSUs, with the state retaining a 26% equity stake, as noted by Mein.
He further explained that the central government is backing these projects by financing 24% equity through Central Financial Assistance (CFA), limited to ₹750 crore per project. This mechanism will provide a total CFA support of ₹6,565 crore through equity participation.
Additionally, the state is set to receive 12% free power from these hydropower projects, with projected revenue of ₹4,520 crore anticipated between 2025 and 2035, which is expected to stabilize at around ₹4,100 crore annually thereafter.
The projects are also expected to generate approximately ₹821 crore annually for local area development, while dividends from the state's equity share are estimated to reach ₹1,452.4 crore, according to the Deputy Chief Minister.
This hydropower expansion is projected to create over 30,000 direct skilled jobs during both construction and operational phases, alongside around 16,000 indirect job opportunities.
Mein also informed the Assembly that the hydropower development department has been restructured and is now operational, with a policy established for the restoration of large hydropower projects that were previously terminated under special circumstances.
Furthermore, the government has proposed a renovate-own-operate-transfer (ROOT) policy aimed at small hydropower projects to attract private investment, optimize asset utilization, and ensure energy security.
The state is in the process of updating its Small Hydropower Policy from 2017 to better align with technological advancements in the sector.
Regarding major ongoing projects, Mein reported that two units with a combined capacity of 500 MW from the 2,000 MW Subansiri Lower Hydroelectric Project have been commissioned, with the remaining three units expected to be operational by March this year. Full commissioning of all eight units is anticipated by December.
The 2,880 MW Dibang multipurpose project is currently under construction, with a completion target set for February 2032.