13th In A Row: Arunachal Pradesh Inks MoA With THDC India To Revive And Build 1,200 MW Hydro Plant

State-owned THDC India Limited (THDCIL) on 30 December signed a pact to build the 1,200 MW Kalai-II hydroelectric project (HEP) at the Lohit river basin of Arunachal Pradesh.

A memorandum of agreement (MoA) was signed between the Arunachal Pradesh government and Central Public Sector Undertaking (CPSU) in this context.

Earlier in August 2023, the state government had signed MoAs with three central PSUs — NHPC Ltd, SJVN Ltd and NEEPCO Ltd for developing 12 HEPs with a cumulative installed capacity of about 11,517 MW.

The Satluj Jal Vidyut Nigam (SJVN) and the North Eastern Electric Power Corporation Limited (NEEPCO) have been awarded five of these long-stalled projects each, with a total installed capacity of 5,097 MW and 2,626 MW respectively, whereas the National Hydroelectric Power Corporation (NHPC) would handle two projects (3,800 MW).

These projects were earlier allotted to private sector developers about 15 years ago but remained non-starters due to various reasons. The state government, therefore, decided to rope in central hydro PSUs to give a push to the languishing projects.

The Kalai-II project, originally assigned to Reliance Power Limited in 2009, faced prolonged delays for various reasons. In a collaborative effort over the past two years, the central and state governments have worked together to overcome obstacles and revitalise the project. The decision to award the project to THDCIL marks a significant step towards resuming its execution and unlocking its full potential.

Hot on the heels of the signing of the MoA, Reliance Power has inked an agreement to sell its Kalai-II HEP for Rs 128.39 crore to THDC India. The purpose of entering into the agreement was to monetise the hydroelectric power project, Reliance Power said in a regulatory filing.

Under the pact, there will be transfer of the development rights and associated physical assets, studies, clearances, designs and intellectual properties of Kalai-II to THDC for an aggregate consideration of Rs 128.39 crore, subject to certain indemnities, representations and covenants, it stated.

It is noteworthy that Kalai-II is the first project to be allotted to a central PSU in the Lohit basin and is also the first project to be taken up by THDCIL in the state.