NEW DELHI — India plans to spend US$1 billion (S$1.35 billion) to expedite the construction of 12 hydropower stations in the northeastern Himalayan state of Arunachal Pradesh, two government sources said, a move that could raise tensions with China that lays claims to the region.
A liquefied petroleum gas delivery truck drives along India's Tezpur-Tawang highway which runs to the Chinese border, in the northeastern Indian state of Arunachal Pradesh May 29, 2012.NEW DELHI — India plans to spend US$1 billion to expedite the construction of 12 hydropower stations in the northeastern Himalayan state of Arunachal Pradesh, two government sources said, a move that could raise tensions with China that lays claims to the region.
The scheme is likely to support northeastern states and help them finance equity holdings in the projects they host. Having state governments on board generally helps in expediting regulatory clearances, locals rehabilitation and negotiations on sharing electricity with the host state. Last August, the government awarded contracts to state-run firms NHPC, SJVNL and NEEPCO for the construction of the 11.5-gigawatt-capacity plants entailing an estimated investment of US$11 billion, as part of a broader project to develop infrastructure in the border region.These power plants were earlier enlisted with private sector firms, but remained non-starters due to various reasons.
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