No go yet for Subansiri Upper handover to KSK Energy

India’s power ministry is yet to approve the handover of the 2,000 MW Subansiri Upper HEP to KSK Energy Ventures Limited. The project is set for implementation on a build-own-operate-transfer basis.

The transfer of infrastructural facilities will materialize only after the power ministry gives its nod and KSK Energy remits US$28 million to NHPC, as reimbursement for expenses incurred by the PSU on the HEP.

The government of Arunachal Pradesh had decided to transfer the project from NHPC to the private developer in June 2010. NHPC`s efforts to persuade the state government to not take away the project, for which the power utility had prepared DPRs, failed to bear fruit. Even the Ministry of Power  refused to take NHPC`s side in the dispute, asserting, instead, that it should follow the directives of the state authorities, given that hydel projects are the state administration's prerogative.

The project, situated in the upper Subansiri district of Arunachal Pradesh, is expected to be commissioned within the 12th plan by 2016-17. NHPC is already constructing the 2,000 MW Subansiri Lower project in the state and is involved in the Dibang and Tawang projects. It has identified six projects with a capacity of 10,000 MW in the state, which is estimated to possess hydroelectric potential of over 50,000 MW.