Arunachal to Terminate Power Project Agreements: Deputy CM

Itanagar, Jul 22 (PTI) The Arunachal Pradesh government is contemplating terminating the memorandum of agreements (MoAs) with "non-serious and non-performing" power developers, the assembly was informed on Monday.

Responding to a question by lone Congress MLA Kumar Waii during the Question Hour, Deputy Chief Minister Chowna Mein said the government has already terminated 53 MoAs after serving notices, due to the failure of the companies to implement the projects in time.

"Out of the total terminated projects, 11 projects have been allotted to interested developers, including CPSUs. The balance 42 projects will be re-allotted to interested developers," said Mein, who also holds the Power portfolio.

At the request of the state government, the Union Power Ministry in 2021 indicated that 29 projects will be allotted to the CPSUs. In August last year, MoAs for 12 projects were signed and that for another project was signed in December.

The total capacity of the 13 projects for which MoAs were signed was 12,723 mw and they would be developed at an investment of Rs 1,35,360 crore, the minister said.

The state will get benefits of about Rs 3,000 crore from 12 per cent free power and about Rs 250 crore as 1 per cent local area development fund, he said.

"Four projects out of the 13 have achieved significant progress in terms of clearances and may be ready for foundation stone laying ceremony at any time," he added.

The NLCT has directed for the tendering process of Demwe Lower HEP (1,750 mw) that was stalled for many years, he said, noting that the project has achieved all clearances and is ready to take off once the process is completed, Mein informed.

The timely completion of the projects will contribute to PM Narendra Modi's announcement at COP26 in Glasgow of achieving 500 gw installed power capacity from non-fossil fuel sources by 2030, he added.

Responding to a supplementary question, Mein said the state government has inked 169 MoAs and MoUs with various power companies.

Arunachal Pradesh has the potential of generating 58,000 mw of hydropower, which is about 40 per cent of the country's total potential, he said.

The minister said the Panyor Lower project of 405 mw was commissioned in 2001, and subsequently, four more projects were commissioned.

The total generation capacity of the state at present is 1,227 mw, he said.

"The 2,000 mw Subansiri Lower Hydro Electric Project that was stalled for many years due to public resistance is now in an advanced stage of commissioning. Two units of the project with an installed capacity of 500 mw will be commissioned by March next year and the entire project will be completed by March 2026," he said.

To another supplementary question, the minister said that the Golden Jubilee Border Village Illumination Program was launched by the state government to provide electricity to far-flung border villages where grid connectivity is not only uneconomical but also unreliable owing to lengthy transmission lines passing through tough hilly terrains and forests.

"The project also serves our strategic needs by providing uninterrupted electricity to our defence and other border guarding forces establishments," he said, adding that it involves establishing 50 micro and mini hydropower projects, having installed capacity of 4,440 kw.