Arunachal commits to fair compensation for SUMP-affected families

The Arunachal Pradesh government on Friday declared 2025–2035 as the ‘Decade of Hydropower’ and unveiled a series of strategic decisions during a special Cabinet meeting aimed at securing long-term economic and environmental benefits for the state.

Chief among the decisions was the creation of an escrow account to manage revenues generated through free power shares from ongoing and upcoming Hydroelectric Projects (HEPs). The state is expected to generate annual revenues of ₹4,525 crore from 2035 onwards, based on nearly 19 GW of HEPs under development, with an investment outlay of over ₹2 lakh crore.

“This mechanism will ensure that the benefits of free power are strategically invested in the state’s long-term development, job creation, and infrastructure growth,” a government statement said.

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The special Cabinet stressed that hydropower will become the backbone of Arunachal's economy, calling for a judicious mix of mega, large, and small projects. A stable regulatory and industrial framework will be developed in tandem to promote employment, entrepreneurship, and self-reliance for the youth of the state.

The Cabinet also reviewed the Siang Upper Multipurpose Project (SUMP), which has been designated a ‘National Project’ by the Centre in 2008. Officials highlighted the strategic and national security importance of the project while acknowledging public concerns surrounding its environmental and social impact.

To address these, the Cabinet emphasized:

> Transparent community engagement with Project Affected Families (PAFs)

> Fair and equitable compensation and resettlement packages

> The need to prepare a Pre-Feasibility Report (PFR) through consensus-building efforts

The Cabinet directed the constitution of a New Yingkiong Development Authority and a New Geku Development Authority, envisioned to develop future-ready towns in the Upper Siang region. Additionally, the Urban Development Department was instructed to begin the survey of a ‘necklace road’ along the Siang River, above the likely submergence area, on both banks.

A committee under the Secretary of Land Management will also be set up to review compensation norms for land and property, and suggest frameworks for a robust Rehabilitation and Resettlement (R&R) Plan.

Further, the Cabinet resolved to seek a special development package from the Centre for the Siang and Upper Siang districts, focusing on beneficiary-oriented social development schemes.

With today’s decisions, Arunachal Pradesh has taken a bold step towards becoming the hydropower capital of India, while committing to inclusivity, sustainable development, and national energy security.