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Indian Government Approves Largest Ever USD 3.9 billion Hydropower Project Bordering China

National Hydroelectric Power Corporation (NHPC) gets approval from the Indian government for the largest ever hydropower project – Dibang Multipurpose Project (MPP) in Arunachal Pradesh near China border as the country pursues to foster renewable generation to meet awakening power demand. The government has approved an estimated investment of USD 3.19 billion for the Dibang Multipurpose Project in Arunachal Pradesh, which is estimated to take nine years to build, according to the state-run hydropower producer NHPC Ltd. In addition, the Government of India’s Cabinet Committee on Economic Affairs (CCEA) approved USD 232 million for pre-investment expenditure on the project in July 2019.

Expected for commissioning in 2028, the approved estimated investment includes government support for food moderation and enabling infrastructure, including roads and bridges connecting the construction site, totaling USD 0.82 billion.

Dibang, a multi-resolution project, will be constructing over 5,439 hectares of forest land in Munli village in the lower Dibang Valley district of Arunachal Pradesh, with flood control operating and also water storage as the project’s core objective. In addition, the Dibang hydropower project will be the ultimate dam structure in the country, involving the building of a 278m high and 375m long concrete dam. The dam will build a 43 km long reservoir with a gross capacity of 3.85 billion cubic meters.

Once the project will complete, the government of Arunachal Pradesh will attain 12% free power from Dibang Multipurpose Project, while another 1% of free power will be contributed to the state, with the help of Members of Parliament Local Area Development Fund (LADF) and the enduring will be sold to other north-eastern and eastern states of India. Additionally, the project will generate 2,880 MV of hydropower and the government of Arunachal Pradesh will deliver 1346.76 MU of water after completion.

With the completion of Dibang’s hydropower project, a significant portion of Assam which is affected by the flooding caused by Brahmaputra, called as Sorrow of Assam will be protected and will contribute to mitigate the ongoing floods damage caused by the Brahmaputra.

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India Small Hydropower Market Segmented By Capacity (Up to 1 MW and 1–10 MW), By Type (Micro Hydropower and Mini Hydropower), By Components (Electromechanical Equipment, Electric infrastructure and Civil Works), By Region, and By Competition,

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India Small Hydropower Market was valued at USD 210.57 million in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 2.09% through 2029.

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