Unviable Arunachal Hydro Projects Have Been Dumped On Central PSUs, Say Experts

Relevance: GS3 - Infrastructure: Energy, Conservation, environmental pollution and degradation, environmental impact assessment. Disaster and disaster management Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth. GS2 - Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

(Source: The Hindu, 08/13/2023)

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Why in the news?

• According to experts, the 12 hydropower projects in Arunachal Pradesh that were handed over to three Central public sector undertakings (CPSUs) on August 12 are economically unviable.
• They have also raised concerns about the environmental dangers posed by these dams.

Why has the government taken over hydel projects in Arunachal Pradesh?

• Hydroelectric projects with a total installed capacity of 11,523 MW have been given up by private sector companies as they are economically unviable.
  • At least ₹1,42,000 crore will be required for these projects to be executed by the CPSUs
• As a result, private sector companies have not developed them despite investing plenty of resources over the years.
• This forced them to sell the projects to the public sector at a loss.
• Public sector enterprises have no accountability which means they can implement unviable projects
• The Satluj Jal Vidyut Nigam and the North Eastern Electric Power Corporation Limited (NEEPCO) have been awarded five projects each, with a total installed capacity of 5,097 MW and 2,626 MW, respectively.
• The National Hydroelectric Power Corporation (NHPC) will handle the other two projects with a total installed capacity of 3,800 MW.
• The government decided to transfer the projects to the private sector as they remained non-starters despite having been allotted to the private sector nearly 15 years ago.
• In September 2019, the State government said in the Assembly that ₹1,495.6 crore was collected as upfront money from firms for power generation projects in the state.

Meeting net-zero goal

• The Arunachal Pradesh Power Commissioner signed the agreement with the three CPSUs on behalf of the state in Itanagar.
• The CPSUs would begin work on at least seven of the 12 projects by March 2024.
• The government’s push for hydropower initiatives was justified by its ability to contribute to the objective of achieving net-zero carbon emissions by 2070.
  • It will contribute towards achieving India’s nationally determined contribution target i.e. to achieve non-fossil fuel energy capacity of 500 GW by 2030.
  • Hydropower is a green source of energy, whose use will also increase the groundwater level and promote the growth of flora & fauna.

What are the other advantages of hydro-power projects?

• Hydel energy projects are also good avenues for generating employment opportunities.
• It will boost the local economy and foster skill development and technical expertise in the region.
• It will result in an estimated investment inflow of about ₹1,26,500 Crores to the state of Arunachal Pradesh.
• This is expected to increase the per capita income of the state to more than that of Maharashtra and Gujarat.
• Indian states that have harnessed their hydropower potential have become prosperous similar to the developed nations like the USA, Canada, Norway, etc., which have harnessed 80%-90% of their hydropower potential.

Concerns associated with these projects

• It will result in a massive change in the state’s economic and socio-cultural life, along with the river ecosystem.
• Deforestation for setting up the projects lead to an increase in the debris and sediments carried by rivers, thereby changing the behavior of the rivers.
• The Eastern Himalayan are more susceptible to landslides, which may be aggravated by the unscientific construction of dams in the region.
• The climate change-induced chain in rainfall patterns in the region over the last decade has increased the probability of floods and droughts.

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FAQs

MCQs

Question: Consider the following statements about Net Zero:

1. It is a condition in which a country would bring down its emissions to zero, taking pre-industrial levels as a base range.
2. India has not yet committed to a net zero timeline.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d)  Neither 1 nor 2