Arunachal Does Not Receive Hydro Power Revenue, Power Dept Says

OUR CORRESPONDENT

ITANAGAR: The Arunachal Pradesh power department has said that it does not receive any monetary compensation from hydroelectric projects in the state in lieu of 12 percent free power and one percent Local Area Development Fund (LADF).

The clarification was issued during the hearing of an appeal filed under the Right to Information (RTI) Act, 2005, regarding the department’s revenue from hydroelectric projects.

The hearing, presided over by the First Appellate Authority (FAA) and Chief Engineer (Power), Commercial cum Chief Electrical Inspector, was held on December 23, at the department’s office, here.

Both the appellant, Tai Shiva, and the Public Information Officer (PIO), Okom Siram, were present.

The department clarified that the 12 percent free power allocated to the state is injected into its power system for consumption. However, this contribution is insufficient to meet the state’s total power demand. To ensure adequate supply, additional power is procured, leading to higher supply costs compared to the rates charged to consumers.

The revenue generated from consumers is remitted to the state treasury, with the government bearing the cost of power supply, resulting in a commercial loss.

Regarding the 1 percent LADF for hydro projects exceeding 25 MW capacities, the department stated that its role is limited to calculating the monetary value of this energy and submitting the details to the Department of Hydro Power Development upon request.

No direct monetary revenue is received by the power department for this allocation.

During the hearing, the appellant requested documentation detailing the calculation of LADF amounts. This request was approved, and a copy of the calculations for the Pare Hydro Project was provided.

The FAA concluded the appeal, stating that the matter was resolved and the case was closed. The department reiterated its commitment to maintaining transparency and responding to public queries regarding hydropower policies.

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