Guwahati: Arunachal Pradesh Chief Minister Pema Khandu on Tuesday said hydropower remains one of the state’s biggest investment opportunities, with nearly 19,000 MW of projects at various stages of development.

Speaking at an official function in Pasighat, Khandu said Arunachal Pradesh would continue to receive 12 per cent free power from hydropower projects, while the Centre has agreed to facilitate a 26 per cent equity share for the state.

With the state’s equity contribution in the projects estimated at around Rs 15,000 crore, the Centre has also agreed to support the funding, he said.

Khandu said the 2,000-MW Lower Subansiri project is expected to be fully commissioned next year, bringing both free power and equity-linked revenue to the state.

He said Arunachal’s Budget had grown from around Rs 12,500 crore in 2015 to nearly Rs 40,000 crore now, adding that greater investment and better use of state-owned resources would further strengthen the economy.

‘SUMP is not just a power project’

On the contentious Siang Upper Multipurpose Project (SUMP), Khandu said the immediate step is to conduct the Preliminary Feasibility Report (PFR), stressing that no decision on construction can be taken before the prescribed technical and legal processes are completed.

He said SUMP should not be seen merely as a hydropower project. Its larger objective, he said, is to create a mechanism to manage water flows and mitigate possible water-related risks.

The Chief Minister said the PFR would be followed by detailed studies and statutory processes, including Social Impact Assessment and Environmental Impact Assessment, along with public consultations.

“Until and unless we are satisfied, this project cannot go ahead,” Khandu said, stressing that people in affected areas must have the opportunity to question experts, raise concerns and seek answers.

He said government offices would remain open to delegations and discussions on the project and invited representatives to make presentations and seek clarifications. The government would also try to circulate information on SUMP in the Adi language through social media, he said.

Khandu described SUMP as a national project with strategic implications, pointing to Arunachal Pradesh’s location along India’s international borders.

He also flagged concerns over possible water diversion and sudden releases from upstream areas, while stressing the need for a long-term solution to recurring floods in the Siang belt.

The Chief Minister said technical experts must examine these issues during the feasibility and subsequent assessment processes.

For now, he said, the focus should remain on the PFR and not on an irreversible decision to build the dam. He added that people should let the technical process establish the facts and then participate in the statutory consultations and decision-making.