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Jindal Power projects in Arunachal face hindrances

Jindal Power projects in Arunachal face hindrances
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In Arunachal Pradesh, the three hydro power projects of more than 5,000 mw capacity, undertaken by Naveen JindalÂ’s Jindal Power (JPL), are likely to take at least 10 more years to get commissioned. This is mainly on account of delays in getting regulatory approvals and funding. The proposed run-of-the-river projects, with envisaged investments of nearly Rs 50,000 crore, include the 3,097 mw Etalin project, the 680 mw Attunli project and the 1,600 mw project at middle Subansiri.

These were set up in joint venture with Hydro Power Development Corporation of Arunachal Pradesh (26 per cent) and Jindal Power (74 per cent) on a build, own, operate and transfer basis. The biggest obstacle for the private firm is that Arunachal Pradesh doesnÂ’t have enough funds to bear the equity investment, said senior company officials working on the projects.

The projects are proposed to be funded by 70 per cent debt and 30 per cent equity. Going by this combination, the State will have to fork out Rs 3,900 crore over six-eight years. Besides, regulatory clearances, including environmental clearance for the Etalin unit, would take at least two more years.

Post this, the civil works such as approach roads have to be built. Equipment orders are not likely to be placed before five-six years from now. Tanga Byaling, Minister for Power (Electrical) and Rural Development of Arunachal Pradesh, said that MoUs were signed with private players for setting up hydro projects a few year back but the projects are not progressing.

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