Arunachal government approves allotment of two power projects to NHPC

The Arunachal Pradesh government has approved the allotment of 2,000 MW Subansiri Upper Hydro project and 1,800 MW Kamala project to state-run hydropower giant National Hydroelectric Power Corporation (NHPC) Ltd. 

The Subansiri Upper Project is located in the Upper Subansiri district of the northeastern state on the Subansiri River, a tributary of the river Brahmaputra, while the Kamala Project to be constructed on Kamala River, a tributary of Subansiri, is located in Kamle district. 

The Subansiri Upper project was allotted to KSK Energy Venture Ltd on March 18, 2010, while, the Kamala project was offered to Jindal Power Ltd on August 28, 2009, by signing a memorandum of agreements (MoAs).

There was no physical progress in both the projects and the power developers could do little of pre-construction activities, the official said. The formal MoA signing ceremony would be held next month, where Union Power Minister R K Singh is likely to attend. 

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The state government has so far terminated 44 memorandums of agreement (MoAs) with various private power developers as they "showed less interest" in executing projects allotted to them. The projects which have been withdrawn from private developers would be handed over to central public sector understandings (CPSUs) and accordingly, fresh MoAs would be signed soon, Deputy Chief Minister Chowna Mein, who also holds the power portfolio, had said recently. 

"After the allotments, progress in many projects could not be achieved due to various reasons. Despite serving several notices to private developers concerned, they were not inclined to execute the projects, for which, 44 MoAs have been terminated," Mein had said. 

The state government is regularly pursuing the matter of hydropower development with the Centre and as a result, the central government in its recent decision prepared an indicative list of 29 projects, the deputy chief minister disclosed. Mein on July 19 held a meeting with the Union Power minister at New Delhi and discussed the progress made in various steps leading to the transfer of power projects from private developers to CPSUs and informed the minister about the headway achieved by the state government in this regard. Four CPSUs have been identified for the purpose - Neepco Ltd, Nhpc Ltd, Sjvn Ltd and Thdc India Ltd, the official said. 

The transfer process has been carefully designed in consultation with various stakeholders, including the Centre and is set to culminate with the signing of MoAs, the official said. The state government has decided to transfer 13 projects with an installed capacity of 12,623 MW to CPSUs including, two to NHPC, one project to Tehri Hydro Development Corporation (THDC) Ltd, five to Northeast Electrical Power Corporation (NEEPCO) Ltd and five to Satluj Jal Vidyut Nigam (SJVN) Ltd, respectively. 

The NHPC is already constructing the 2,000 MW Subansiri Lower Hydroelectric Project at Gerukamukh in the Assam-Arunachal boundary, which is nearing commissioning and has recently started construction of the 2,880 MW Dibang Multipurpose Project on river Dibang in the state.