In the ongoing debate on forest clearance for the controversial Etalin Hydropower project in Dibang Valley in Arunachal Pradesh between the Forest Advisory Committee, The Hindustan Times’s consistent reporting and Sanctuary magazine launching a campaign along with others, one (of the many) key question that remains unanswered is: for whom this economically (in addition to socially, environmentally and from climate change perspective) unviable, massively expensive project being pushed in a power surplus country?

Electricity from hydropower projects is no longer economically viable, since cheaper options are available. Some misguided people are claiming virtue in hydropower project claiming it provides peaking power. The fact is India is today not only power surplus, the peak power deficit has been just around 1% or less for long time. This when there is no attempt to either monitor as to how much of the electricity produced from existing hydropower projects provides peaking power, nor is there any attempt to achieve optimisation of operation of existing hydro projects to produce maximum possible hydropower. Nor is there any attempt to even manage the peaks either through pricing or other policy measures. In such a situation there is clearly no justification for more hydro for peaking. Moreover, the storage option is becoming increasingly cost effective, reducing the peaking power needs. So then for whom this project whose cost won’t be less than Rs 30000 crores at most conservative estimates, being pushed? The contractors, the equipment suppliers, the hydro lobby, the consultants, the timber lobby, the dam lobby, or the kickbacks?

Continue reading “DRP NB 27 April 2020: For whom is this unviable Etalin project being pushed?” →