New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved ₹4,136 crore proposal to enhance hydroelectric power development in India’s North Eastern Region (NER). This decision will provide Central Financial Assistance (CFA) to regional State Governments for their equity participation in hydroelectric projects.
The scheme is designed to support the development of a total hydro capacity of about 15,000 MW through joint ventures between state entities and Central Public Sector Enterprises (CPSEs). The funding from the Ministry of Power’s total budget will be allocated from the 10% Gross Budgetary Support (GBS) for the North Eastern Region.
SJVN Limited has already signed a Memorandum of Agreement (MoA) with the Government of Arunachal Pradesh to develop five significant run-of-the-river hydroelectric 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 clearance and are expected to involve an investment of around ₹44,000 crore. Together, they will contribute about 15,787 million units of electricity annually upon completion.
The approved scheme includes a cap of 24% for the State Governments’ equity portion of the total project equity, up to a maximum of ₹750 crore per project. This cap may be adjusted on a case-by-case basis if necessary. The scheme aims to maintain a balanced equity ratio between the CPSEs and State Governments when disbursing the grant.
This initiative will encourage greater State Government participation in hydropower development, promoting a 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, thus minimizing potential delays and cost overruns.
The scheme is anticipated to have a transformative impact on the North Eastern Region, attracting substantial investment and generating numerous direct and indirect employment opportunities. It will also contribute significantly to India’s Nationally Determined Contribution (INDC) goal of achieving 500 GW of renewable energy capacity by 2030, thereby enhancing the reliability and flexibility of the national power grid.
The hydro projects, once operational, will foster extensive socio-economic development in Arunachal Pradesh. They are set to improve infrastructure, healthcare services, and educational opportunities, while also providing employment and supporting sustainable development.
The recent MoAs signed by the Government of Arunachal Pradesh with various CPSEs, including NHPC, NEEPCO, SJVN, and THDCIL, for the development of 13 hydroelectric projects totalling 12.7 GW further align with this scheme. The introduction of Central Financial Assistance for equity participation marks a significant step toward advancing the hydropower sector in the North East and progressing towards a developed India, or “Viksit Bharat.”
