India approves $3.9 billion hydropower project near Chinese border

02 Mar 2023 CW Team

India has approved its largest hydropower project in the country's mountainous northeastern region bordering China, as it seeks to build renewable generation to meet rising power demand.

The government has approved a Rs 3.19 billion investment for the 2,880-megawatt Dibang project in Arunachal Pradesh. The project is expected to take nine years to complete.

Hydropower is classified as renewable energy in India, and it is seen as critical in the country's transition away from coal in order to manage fluctuations caused by intermittent solar and wind supplies. However, the large-scale environmental damage and community displacement caused by dam construction has hampered those plans, with local protests delaying projects and increasing construction costs.

The approved investment includes government support for flood mitigation and enabling infrastructure, such as roads and bridges connecting the construction site, totaling Rs 67.2 billion.

The NHPC did not respond to an email seeking feedback. Several other projects in the Himalayan region are running years behind their original schedule, with some blamed for loosening the earth and forcing local evacuations.

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