The Hindu Business Line : NHPC may scale down Upper Siang project size over Chinese concerns

NHPC's future plans include an investment over Rs 3,300 crore in 2006-07 as part of its capital expenditure plan, while adding 900 MW of hydro capacity during the next fiscal.

New Delhi , Jan. 17

STATE-run National Hydroelectric Power Corporation (NHPC) may have to scale down the size of its 11,000-MW Upper Siang project in Arunachal Pradesh — billed as the country's largest power project and the third largest in the world — unless it finds an alternative location to shift the project.

This comes in the backdrop of environmental concerns raised by China against the project as it could lead to submergence of Chinese territory across the border.

"We are looking for another suitable location but if we do not find a site we may have to scale down the project to around 7,000-8,000 MW," the NHPC Chairman and Managing Director, Mr S.K. Garg, said on the sidelines of a seminar here. The Chinese authorities had approached the Indian Government over the issue last year. NHPC has initiated the process of searching for an alternative site, he said.

On the plans for the future, Mr Garg said the company plans to invest over Rs 3,300 crore in 2006-07 as part of its capital expenditure plan, while adding 900 MW of hydro capacity during the next fiscal. "We have set our capex at Rs 3,312 crore for the next fiscal. Of this, we expect to get Rs 1,374 crore as gross budgetary support while the remaining would be internal budgetary resources," he said.

The company is also likely to finalise a $100-million (about Rs 450 crore) concessional loan as export credit assistance for its 2,000-MW Subansiri (Lower) power project in Arunachal Pradesh.

Mr Garg said the company had no plans to raise more loans from the market in the next fiscal as it had enough funds for now.

"We had inked an agreement with LIC for long-term credit of Rs 9,000 crore, so we do not require fresh loans," he said. The public sector company is also targeting to commission two projects in the next financial year.

The 390-MW Dulhasti project in Jammu and Kashmir would be completed by June 2006 and the 510-MW Teesta-V by February 2007, he said.

NHPC has plans to raise Rs 27,000 crore from the open market to part fund its Rs 60,0000-crore capacity addition plans by 2012.

The company has set a target to augment its generation capacity from present 3,755 MW to 7,707 MW by 2012.