In a move aimed at securing future energy needs, the Madhya Pradesh government on Friday signed a Power Purchase Agreement (PPA) with NHPC for 252 MW of electricity from a multipurpose hydropower project in Arunachal Pradesh’s Lower Dibang Valley.
The agreement was formalized in Bhopal through a Memorandum of Understanding (MoU) between the MP Power Management Company and NHPC, in the presence of Chief Minister Mohan Yadav.
Chief General Manager of MP Power Management Company, Rakesh Thukral, and NHPC General Manager Omkar Yadav signed the deal, with several top officials including Additional Chief Secretary (Energy) Neeraj Mandloi and MDs Avinash Lavania and Rajiv Jain in attendance.
The 252 MW allocation comes from a massive hydroelectric project being developed on the Dibang River, expected to be operational by 2031–32. According to officials, the electricity from this project will be especially crucial during the Rabi season, covering more than three hours of peak demand daily and up to 19 hours during other periods.
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Highlighting the importance of diversifying energy sources, CM Yadav said, “MP is an agriculture-based state, and electricity consumption in the agriculture sector is increasing steadily along with domestic and industrial use. That’s why we're preparing for the future by securing renewable energy sources like this one.”
Officials estimate Madhya Pradesh’s power demand may touch 20,000 MW by the end of this financial year, underlining the need for long-term procurement strategies.
The project is part of the broader energy cooperation between states and the Centre, facilitated by the Union Ministry of Power to balance supply and demand across regions through renewable and hydro resources.