NHPC gains after Cabinet nod for Dibang MMP in Arunachal Pradesh

NHPC rose 1.17% to Rs 38.75 after the company said that the Cabinet Committee on Economic Affairs has accorded investment approval for the implementation of Dibang Multipurpose Project (MMP) in Arunachal Pradesh.

The estimated cost is Rs 31,876.39 crore, including budgetary support of Rs 6,159.40 crore towards flood moderation component and Rs 556.15 crore towards Enabling infrastructure (i.e. roads/ bridges etc.).

The Cabinet has approved the expenditure of Rs 1,600 crore on pre-investment activities and various clearances for the Dibang MMP being developed by the company in Arunachal Pradesh.

The estimated total cost of project is Rs 28,080.35 including interest during construction (IDC) & financing charges (FC) of Rs 3,974.95 crore at 18 June price level. The estimated completion period for the project shall be nine years from receipt of Government sanction.

The power generation company said that the project will generate 2,880 megawatt (MW) (12x240MW) power to produce 11,223 MU of energy in a 90% dependable year. This is the largest ever Hydro Electric Projects to be constructed in India. The dam is 278 metres high and will be the highest dam in India once completed, it added.

The project is located on river Dibang, in Lower Dibang Valley district of Arunachal Pradesh. The project envisages construction of a 278m high concrete gravity dam (above deepest foundation level), 6 Nos. horseshoe-shaped Head Race Tunnels of length varying from 300m to 600 m with 9 m dia., an underground Power House and 6 Nos. horseshoe-shaped Tail Race Tunnels of length varying from 320m to 470 m with 9m dia.

On completion, the Government of Arunachal Pradesh will get 12% free power from the project i.e. 1,346.76 MU. 1% free power (i.e. 11 2 MUs will be given in Local Area Development Fund (LADF). The total value of benefit to Arunachal Pradesh from Free power and contribution to local area development funds (LADF) will be Rs 26,785 crore over the project life of forty years.

Dibang Multipurpose Project (Dibang MPP) is envisaged as a storage based hydro-electric project with flood moderation as the key objective. The construction of Dibang MPP shall prevent the sizeable downstream area from floods. After implementation of master plan of Brahmaputra Board for flood moderation of all rivers contributing to river Brahmaputra, of which Dibang MPP is one of the component, sizable area will be protected from flooding and help in mitigating the perennial damage due to floods in Assam.

The project is having all statutory clearances viz. TEC, Environment Clearance, Forest Clearance (Stage-1) and Defence Clearance except Forest Clearance (Stage-ll) for seeking Investment Sanction from Govt. of India, NHPC said in the statement.

The approval of anticipated expenditure on pre-investment activities and various clearances shall enable payment towards compensation for land acquisition and R&R activities (Rs 500.40 crore) to project affected families and state government, payment of Net Present Value (NPV) of forests, compensatory afforestation (CA), catchment area treatment plan (CAT) to the state government for forest lands, to secure the Forest Clearance (Stage-H) and construction of roads and bridges for accessing project site.

In addition to the mandated R&R plan, it is also proposed to spend Rs 241 crore on community and social development plan and certain concerns raised by the local people during the public hearings. It is also proposed to spend an amount of Rs 327 lakhs on a plan for protection of culture and identity of local people.

NHPC is the largest organization for hydropower development in India. It has also diversified in the field of solar & wind power. As of 31 December 2022, the Government of India held 70.95% stake in the company.

The power generation company's consolidated net profit declined 17.4% to Rs 671.67 crore despite of 19.8% rise in revenue from operations to Rs 2,582.76 crore in Q3 FY23 over Q3 FY22.

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