Staff REPORTER
Itanagar, Feb 5: Arunachal Pradesh Deputy Chief Minister Chowna Mein on Thursday unveiled an ambitious roadmap in the Assembly to significantly scale up hydropower generation, positioning the state as a key contributor to India’s clean energy transition under the declared “Decade of Hydropower (2025–35)”.
Arunachal Pradesh possesses an estimated hydropower potential of 58,000 MW, accounting for nearly 40 per cent of India’s total hydropower potential, Mein said, adding that hydropower from the state will play a crucial role in India’s commitment to achieve net-zero carbon emissions by 2070.
Responding to a supplementary question raised by MLA Tapi Darang, the Deputy Chief Minister said that the state government aims to increase hydropower generation by 19 GW through a combination of micro, small, large and mega projects, involving an estimated investment of around Rs 1.9 lakh crore.
He stated that with support from the Government of India, the state is reviving 13 stalled hydropower projects with a combined capacity of 12.2 GW. In this regard, MoUs were signed with four Central Public Sector Undertakings (CPSUs) in 2023.
Of these, three projects—Heo (240 MW), Tato-II (700 MW) and Tato-I (186 MW)—have already been approved by the Cabinet Committee on Economic Affairs (CCEA), and construction activities have commenced. These projects are being developed through joint ventures between the State Government and CPSUs, with the State Government holding a 26 per cent equity stake, he informed.
The Government of India is extending support through Central Financial Assistance (CFA) by contributing 24 per cent equity, subject to a maximum cap of Rs 750 crore per project. Under this scheme, the CFA component will cover Rs 6,955 crore through equity participation.
The state will receive 12 per cent free power from hydropower projects. Additionally, the state government is expected to earn an estimated Rs 4,520 crore from 2025 to 2035, and approximately Rs 4,100 crore annually from 2035 onwards.
From its 26 per cent equity holding in joint ventures, the state is projected to receive dividend payouts amounting to Rs 1,452.4 crore, Mein said.
Under the Local Area Development Fund (LADF) framework, 2 per cent of project revenues—with 1 per cent contribution each from the developer and the state government—will be earmarked for local area development works.
The state government is expected to receive around Rs 821 crore per year for local area development, which will be implemented as per the recommendations of Local Area Development Committees constituted with local representatives.
Further, 1 per cent LADF will be provided as a lifetime annual annuity to Project Affected Families, to be paid directly through Direct Benefit Transfer (DBT).
As per MoUs signed between the state government and CPSUs, the joint venture companies are required to provide job reservations for Project Affected Families (PAFs), including managerial/professional posts (Group A & B) - 25%, ministerial/clerical posts (Group C & D) - 50%, and skilled & unskilled jobs - 25% each.
Overall, the hydropower projects are expected to generate over 30,000 skilled direct jobs during construction and operational phases, besides creating around 16,000 indirect employment opportunities, he informed.
Mein also informed the House that the Department of Hydropower Development (DHPD) has been restructured and operationalised as DHPD 2.0. A policy for restoration of terminated large hydropower projects under special circumstances was introduced in 2025, under which Gongri HEP (144 MW) became the first project to be revived.
To attract private investment in small hydropower projects, the state has introduced the Renovate-Own-Operate-Transfer (ROOT) Policy, 2026, and is also revamping the Small Hydro Power Policy, 2007, in line with technological advancements.
Providing updates on major projects, the Deputy Chief Minister said 2,000 MW Subansiri Lower Hydroelectric Project’s two Units (500 MW) have been commissioned, three additional units are expected by March 2026, and all eight units are targeted for commissioning by December 2026, while the 2,880 MW Dibang Multi-Purpose Project, currently under construction, is expected to be completed by February 2032.
Mein added that the state government is closely monitoring project implementation through a Steering Committee chaired by the Chief Minister and a Standing Committee chaired by the Advisor to the State Government.