Cost escalation takes Rs 1,000-cr toll on NHPC’s stalled Subansiri project

Siddhartha P. Saikia New Delhi | Updated on March 12, 2018

NHPC Ltd has so far suffered cost over-run of more than Rs 1,000 crore on the Subansiri hydro power project on the Assam-Arunachal Pradesh border, which has been stalled due to protests by local residents. The 2,000 MW project was expected to be commissioned in September 2010.

“It is expected that within this month, some major breakthrough would be made. Re-starting of work would take sometime, as it is stopped for more than one and a half year . Re-mobilisation of resources would take some time. It will take four to four and a half year to complete after we re-start work. This means, this project would not be completed during the 12th Five Year Plan,” A. B. L. Srivastava, Director (Finance), of the public sector power producer, told Business Line.

Till June 30, NHPC had spent Rs 6,614 crore on the project. “The expert committee appointed by the Government confirmed that the dam is safe. However, some additional precautions have been prescribed, which NHPC is ready to follow,” Srivastava added.


NHPC is looking to partner private players for new greenfield projects. It has invited expressions of interest from private sector greenfield projects, where the construction has started. “Most of the projects have been allotted by State Government, either to State entities or the private sector. In order to expand our business, we decided to go for joint venture. This is because NHPC is the most experienced player and has cash flow. Private sector lacks both, as they have limited cash flow and less experience in setting up and running hydro projects,” Srivastava said.

When asked about NHPC’s previously held discussions with private players for joint venture which did not bear fruit, he said, “In order to make a transparent process and not negotiate with individual parties, we have called for expressions of interest.”

Published on August 17, 2013

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