The Arunachal Pradesh government on Friday declared the decade from 2025 to 2035 as the ‘Decade of Hydropower’, unveiling a strategic roadmap during a special Cabinet meeting that balances energy development with equitable rehabilitation for affected communities.One of the most significant outcomes of the meeting was the decision to set up an escrow account to manage future revenues from free power shares of hydropower projects currently under development. With nearly 19 gigawatts of hydroelectric capacity in the pipeline and an estimated investment exceeding ₹2 lakh crore, the state anticipates an annual revenue of around ₹4,525 crore from 2035 onwards. “This mechanism will ensure that hydropower revenue is used for long-term development, job creation, and infrastructure growth,” a government statement said, underlining the state’s commitment to sustainable and inclusive growth.
The Cabinet discussed in detail the progress and concerns surrounding the Siang Upper Multipurpose Project (SUMP), declared a National Project by the Centre in 2008. While highlighting the project’s strategic and national security importance, the government acknowledged the environmental and social challenges it poses.
To address these concerns, the Cabinet announced a multi-pronged approach:
Transparent dialogue with Project Affected Families (PAFs)
Equitable compensation and resettlement packages
Preparation of a Pre-Feasibility Report (PFR) through community consensus
In a forward-looking move, the Cabinet also approved the formation of the New Yingkiong Development Authority and New Geku Development Authority to build future-ready urban centers in the Upper Siang region. The Urban Development Department has been tasked with initiating surveys for a ‘necklace road’ along the Siang River, designed above the likely submergence zone on both riverbanks. A committee under the Secretary of Land Management will review and suggest fair compensation norms for land and property acquisition, laying the groundwork for a robust Rehabilitation and Resettlement (R&R) Plan. Simultaneously, the state will urge the Centre to grant a special development package for Siang and Upper Siang districts, with an emphasis on social welfare and beneficiary-oriented schemes. The special Cabinet session underscored that hydropower will be the economic backbone of Arunachal Pradesh, calling for a balanced mix of large, medium, and small projects under a stable regulatory framework. The government aims to create employment, foster entrepreneurship, and promote self-reliance among its youth through the new hydropower vision.