THDC to develop 1,200 MW hydropower project in Lohit basin in Arunachal

New Delhi: The Arunachal Pradesh Government on Saturday signed an agreement with the Tehri Hydropower Development Corporation India Ltd (THDCIL) for developing the 1,200-mw Kalai-II hydroelectric project in the Lohit river basin at a cost of Rs 13,000 crore.

State Hydropower Commissioner Ankur Garg and THDC's Director (Technical) Bhupender Gupta signed the agreement on behalf of the two sides. Chief Secretary Dharmendra presided over programme.

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In August, the state government signed agreements with three central PSUs -- NHPC, SJVN and NEEPCO -- for developing 12 hydropower projects, having a combined capacity of 11,517 mw, in Subansiri, Dibang and Siang basins. With the allotment of Kalai-II project to THDCIL, the government concluded agreements for 13 projects with a total capacity of 12,717 mw in this calendar year.

The Kalai-II project was initially allotted to an independent power developer in 2009 but it did not take off due to various reasons. This is the first project to be taken up by THDCIL, a CPSU, in the state.

Garg said the project would bring in an investment of over Rs 13,000 crore in the state during its construction phase. Once commissioned, it will generate a revenue of over Rs 300 crore annually in free power for the state.

Deputy Chief Minister Chowna Mein said the project will create historic development and employment opportunities in the Lohit basin area.

"The State Government will have 26 percent equity in the project. The dividend from this equity participation will further augment the state's earnings," Mein, who also holds the power and hydropower portfolios, said.

Chief Minister Pema Khandu thanked Prime Minister Narendra Modi and Union Power Minister RK Singh for their support towards restarting the project.

He said the state was committed to ensuring the full realisation of its hydropower potential for meeting the energy needs of the country.

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