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The Cabinet headed by Arunachal Pradesh Chief Minister Pema Khandu has declared 2025-2035 as the ‘Decade of Hydropower’ to harness the State’s potential to generate 58,000 megawatts (MW) of electricity.

The special Cabinet meeting held on Friday termed the thrust on hydropower as a “strategic management of revenues generated through free power from the hydroelectric projects (HEPs).

“During the Decade of Hydropower, the government aims to undertake strategic policy and governance measures not just to harness the hydropower potential through a judicious mix of mega, large, and small hydroelectric projects, but also to create a stable and supportive policy and regulatory framework for the overall development of the industrial ecosystem in the State,” a statement issued by the Chief Minister’s Office said.

According to the agreement with power developers, Arunachal Pradesh will receive 12% free power from each HEP, and an additional 1% for a local area development fund. Arunachal Pradesh expects ₹4,525 crore in annual revenue from 2035 onwards from projects in various stages of completion.

These projects, riding cumulative investments of more than ₹2 lakh crore in the next 10 years, have a combined capacity of generating 19 gigawatts (GW) of electricity.

The State Cabinet approved the creation of an escrow account for “strategic management and effective utilisation of the revenue generated from the proceeds of free power” from these HEPs.

“By effective management of these benefits, the State can make strategic and financial decisions about investing in the overall development of the State. This initiative will not only streamline financial processes but also ensure that the benefits of free power are maximised for the State’s long-term sustainable growth and prosperity,” the statement read.

Plans for Siang project

The Cabinet underscored the need to allay fears and build consensus among the people likely to be affected by the controversial Siang Upper Multipurpose Project (SUMP) that anti-dam activists said is targeted to generate 11,000 MW of electricity.

The Centre declared the SUMP as a national project in 2008, given its significance from the national security point of view. The project is being pursued as a counter to China’s proposed 60,000 MW project on the Yarlung Tsangpo River in Tibet upstream.

The Cabinet sought regular and detailed interactions with the likely project-affected families (PAFs) regarding the urgent need to conduct the pre-feasibility survey for the SUMP. Villagers in three districts — Siang, East Siang and Upper Siang — have been resisting this survey.

The Cabinet emphasised the need for continuous engagement with the PAFs to ensure fair, just, and equitable compensation and solatium, in case the SUMP is found to be feasible.

The Cabinet directed the State’s Department of Urban Development to constitute a New Yingkiong Development Authority and a New Geku Development Authority to pursue “future-ready alternate towns”. It accordingly approved the constitution of a committee to examine land and property compensation rates and suggest the mechanisms to be adopted for designing and implementing a robust rehabilitation and resettlement plan for the PAFs.

Geku and Yingkiong are towns in the Upper Siang district.

The Cabinet further directed the Public Works Department to initiate a survey for a necklace road along the Siang River, above the likely submergence area.