HT Bureau
NAMSAI, June 14: In a significant move towards unlocking Arunachal Pradesh’s vast hydropower potential, the State Cabinet convened a special session today and took a series of crucial decisions aimed at shaping the future of hydropower development in the state.
One of the key highlights of the meeting was the strategic management of revenues generated from free power under upcoming hydropower projects (HEPs). The Cabinet has formally approved the creation of a dedicated escrow account to manage and utilize the proceeds from the sale of free power strategically and effectively.
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The decision comes in light of Arunachal Pradesh’s announcement of 2025 to 2035 as the ‘Decade of Hydro Power’, signaling an ambitious push to harness the state’s estimated 58,000 MW hydropower potential. During this period, the state government aims to implement robust policies and governance measures to promote the development of mega, large, and small hydropower projects, while simultaneously ensuring the growth of a stable and enabling industrial ecosystem.
According to government estimates, around 19 GW of hydropower capacity is currently under development across the state, backed by cumulative investments exceeding Rs 2 lakh crore over the next decade. Once operational, these projects are expected to generate annual revenues of approximately Rs 4,525 crore for the state from the sale of free power starting in 2035.
The Cabinet’s approval of an escrow mechanism is aimed at ensuring transparency, accountability, and strategic financial planning. Officials emphasized that the new system would allow the government to make long-term, forward-looking decisions on investing these revenues into critical areas such as infrastructure, education, healthcare, and livelihood development, while also supporting entrepreneurial and employment opportunities for the youth of Arunachal Pradesh.
A government spokesperson stated that the initiative would not only streamline the fiscal process related to hydropower income but also contribute significantly to the realization of Arunachal Pradesh’s energy goals, positioning the state as a powerhouse of green energy in the country.
This long-term financial strategy is expected to usher in a new era of sustainable and inclusive development, ensuring that the economic gains from hydropower directly benefit the citizens and further enhance the state’s role in contributing to India’s renewable energy ambitions.
