July 19

Cabinet approves investments in India's largest hydropower plant

NEW DELHI: The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi has approved Rs 1600 crore expenditure on pre-inv estment activities and various clearances for Dibang Multipurpose Project in Arunachal Pradesh. 

The estimated total cost of project is Rs 28080.35 crore and the estimated completion period for the project shall be nine years from receipt of Government sanction, an official statement said. 

The project will generate 2880 mw (12x240 mw) power and is the largest ever hydro electric project to be constructed in India. The dam is 278 metres high and will be the highest dam in India once completed.

The project is located on river Dibang, in Lower Dibang Valley District of Arunachal Pradesh. The project envisages construction of a 278 m high concrete gravity dam. 

On completion, the government of Arunachal Pradesh will get 12% free power from the project. One percent free power will be given in Local Area Development FUND (LADF). The total value of benefit to Arunachal Pradesh from free power and contribution to LADF will be Rs 26785 crore over the project life of 40 years.

Dibang Multipurpose Project is envisaged as a storage based hydro-electric project with flood moderation as the key objective. The construction of Dibang MPP shall prevent the sizeable downstream area from floods. After implementation of master plan of Brahmaputra Board for flood moderation of all rivers contributing to river Brahmaputra, of which Dibang MPP is one of the component, sizable area will be protected from flooding and help in mitigating the perennial damage due to floods in Assam, the statement said.

  The project is having all statutory clearances including environment clearance, forest clearance (Stage-l) and defence clearance except forest clearance (Stage-II) for seeking Investment Sanction from the Centre. 

The approval of anticipated expenditure on pre-investment activities and various clearances shall enable payment towards compensation for land acquisition and R&R activities (Rs 500.40 crore) to project affected families and state government, payment of Net Present Value (NPV) of forests, Compensatory Afforestation (CA), Catchment Area Treatment Plan (CAT) to the state government for forest lands, to secure the Forest Clearance (Stage-lI) and construction of roads and bridges for accessing project site. In addition to the mandated R&R plan, it is also proposed to spend Rs. 241 crore on Community and Social Development plan and certain concerns raised by the local people during the public hearings. It is also proposed to spend an amount of Rs. 327 lakhs on a plan for protection of culture and identity of local people, it said. 


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