Arunachal cancels 53 ‘non-performing’ power deals
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Itanagar, July 22 (UNI): Arunachal Pradesh Deputy Chief Minister Chowna Mein on Monday told the Assembly that the state has so far terminated 53 memorandum of agreements (MoAs) with “non-performing” power developers.
He said the government contemplated terminating more MoAs with non-serious and non-performing developers. “The State Government has served show cause notices/intent to terminate MoAs to 73 developers due to the failure of the developers to commence implementation of the projects.
In case the replies of the developers are unsatisfactory, the MoAs will be terminated, said Mein, who is also the Minister in-charge of Power while replying to a supplementary from Congress member Kumar Waii during ‘question hour’.
In the first phase, the government had cancelled MoAs of 29 projects and accordingly, on the request of the State Government, the Ministry of Power, Government of India has indicated 29 projects to be allotted to the CPSUs.
Of the terminated projects, the Government has so far re-allotted 13 projects to Central PSUs including NHPC, THDC, SJVN, and NEEPCO. On August 12, 2023, the MoAs of 12 projects were signed in the presence of the then Union Power Minister RK Singh and the MoA of another project was signed on December 30, 2023.
The total installed capacity of 13 projects is 12,723 MW with an investment of Rs 1,35,360 crore. The State Government shall benefit about Rs 3000 crore from 12% free power and about Rs 250 crore as 1% LADF to the project-affected families annually.
“Once these projects are commissioned, Arunachal Pradesh will have yearly revenue earning of around Rs 10,000 crore,” the Deputy CM said, adding that four of the projects were in the progressive stage, the construction of which will be started “soon”.
He said that the State can produce 58,000 MW of hydropower which is about 40% of the total hydro potential of the country. To harness the vast potential of hydropower, the Government of Arunachal Pradesh allotted over 46,900 MW capacity to 154 developers.
Out of the total allotted projects, the 405 MW Panyor Lower (earlier Ranganadi) Project was commissioned in 2001. Subsequently, 4 more projects were commissioned; now, the state has a total generation capacity of 1227.60 MW.
Mein also stated that due to the active initiative of the State Government, the 2000 MW Subansiri Lower Hydro-Electric Project which was stalled for so many years due to people’s resistance is now in an advanced stage of commissioning. Two units of the project having an installed capacity of 500 MW will be commissioned by March 2025 and the project will be fully commissioned by March 2026.