INFRASTRUCTURE
India set to line up Rs 9,000 crore for 12 hydropower plants in Arunachal Pradesh
- IBJ Bureau
- Jul 10, 2024
India plans to spend $1 billion to expedite construction of 12 hydropower stations in Arunachal Pradesh, two government sources have said. The construction could raise tension with China that lays claims to the region.
The Union Finance Ministry under Nirmala Sitharaman has recently approved up to Rs 900 crore in financial assistance to each hydropower project in the north-eastern Himalayan State, the sources add.
Under the scheme, about Rs 9,000 crore will likely be allotted for the 12 hydropower projects in Arunachal Pradesh.
The scheme is likely to support north-eastern States and help them finance equity holdings in the projects they host. Having State governments on board generally helps in expediting regulatory clearances, rehabilitation of locals and negotiations on sharing electricity with the host State.
The plans for the hydropower stations are expected to be announced in the 2024-25 Union Budget that Prime Minister Narendra Modi’s government will unveil on July 23, the sources have said, declining to be named as the information remains confidential.
Last August, the government had awarded contracts to State-run companies NHPC, SJVNL and NEEPCO for construction of the 11.5-gw-capacity plants entailing an estimated investment of $11 billion as a part of a broader project to develop infrastructure in the border region.
India has built less than 15 gw of hydropower plants in the last 20 years, while installations of new coal and other renewable sources of energy are nearly 10 times that of the new hydropower projects.
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