Arunachal Pradesh Government Reaffirms State's Support for Tawang Hydroelectric Projects

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Researched by Industrial Info Resources India (Sugar Land, Texas)--The state government of Arunachal Pradesh has reassured India's state-owned hydropower major NHPC Limited (BSE:533098) (Faridabad, Haryana) that it will extend all necessary support in obtaining forest clearances for the latter's mega hydel venture in the state. NHPC has identified two hydroelectric projects, Tawang I and Tawang II, which have a total 1,400 megawatt (MW) capacity, for execution in the northeast Indian state.

The implementation of the two hydroelectric projects has been stalled because of pending forest clearances from India's Ministry of Environment and Forests (MoEF). Despite frequent follow-ups from NHPC for almost three years, the MoEF has not yet conceded to accord its nod for the diversion of forest land required for construction of the two hydroelectric projects, which are proposed to be developed on the Tawangchu River in the state. NHPC applied to the State Conservator of Forests for clearances for these projects in December 2009.

In a recent meeting with NHPC officials, the Chief Minister of Arunachal Pradesh, Nabam Tuki, said that the matter regarding forest clearances for Tawang I and Tawang II has been taken up by the state in the MoEF, and it will continue its follow up with the MoEF to expedite the requisite clearances.

The Central Electricity Authority (New Delhi) of India has accorded techno-economic clearances to Tawang I and II projects, but NHPC cannot make any further progress due to non-availability of forest clearances from MoEF. In the absence of the statutory clearance, NHPC also has been unable to obtain the capital approval for the projects from the Cabinet Committee of Economic Affairs.

The two hydroelectric projects are planned to be developed near Jang village in the Tawang district of Arunachal Pradesh, at an estimated investment of $2.46 billion. Tawang II would be developed 700 meters downstream from the Tawang I project. Tawang I has a planned construction period of 78 months. Tawang II is expected to have a construction period of 83 months.

With an installed generation capacity of 5,526 MW, NHPC is India's largest hydropower utility. The company is currently pursuing clearances from the government of India for several hydropower projects with an aggregate capacity of 9,651 MW. Of these, seven projects (with an aggregate capacity of 5,965 MW) are planned to be implemented by NHPC on its own, while other projects are planned for execution through joint ventures.

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