Page 48 - Policy Economic Report - April 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

viz. construction of roads, bridges and associated transmission system besides Central Financial Assistance
of Rs.750 crore towards the equity share of the State.

The State will receive 12% free power and an additional 1% earmarked for the Local Area Development
Fund (LADF), along with significant infrastructure development and socio-economic benefits for the
region.

There will be significant improvement in the infrastructure in Kamle, Kra Daadi & Kurung Kumey Districts
of Arunachal Pradesh, including the development of around 196 kms of roads and bridges, for the project
which shall be mostly available for local use. The district will also benefit from the construction of essential
infrastructure such as hospitals, schools, marketplaces etc. to be financed from dedicated project funds
of Rs.8 crore. Local populace shall also be benefitted from compensations, employment and CSR activities.

Beside Kamala HEP, three major hydropower projects—Subansiri Lower (2000 MW), Dibang Multipurpose
(2880 MW), and Etalin (3097 MW)—are being developed by NHPC Limited in Arunachal Pradesh and
Assam. Subansiri Lower HEP (2000 MW) is at an advanced stage with 750 MW already commissioned and
remaining capacity is expected to be commissioned by December 2026, while all projects will provide 12%
free power to the host states and support local development through a Local Area Development Fund
equivalent to 1% of project revenue.

Union Minister Shri Manohar Lal Arrives in Bhutan; Reaffirms India–Bhutan Partnership on Clean Energy
and Sustainable Development

The Union Minister of Power and Housing & Urban Affairs, Shri Manohar Lal, arrived in Bhutan for a 4-day
visit. His visit marks another important step in the deepening of India–Bhutan bilateral ties.

India and Bhutan share exemplary bilateral relations, characterized by mutual trust, understanding, and
close cooperation across sectors. The visit underscores the shared vision of both countries to further
strengthen collaboration in energy security and sustainable development.

Shri Manohar Lal called on the Prime Minister of Bhutan, Shri Tshering Tobgay. During the meeting the
two leaders reaffirmed the shared commitment of the two nations to advance cooperation in clean energy
and sustainable development.

In another meeting with the Lyonpo Gem Tshering, Minister for Energy & Natural Resources, Royal
Government of Bhutan, Shri Manohar Lal held discussions that focused on strengthening ongoing
cooperation in the hydropower sector and on future avenues in renewable energy and regional power
trade.

Expanding the scope of cooperation in the power sector, India and Bhutan have established an enhanced
bilateral institutional framework mechanism. This mechanism will enable regular review and coordination
of ongoing and future initiatives between the two countries to further strengthen collaboration. Key areas
of cooperation include non-hydro energy, cross-border transmission, project financing, capacity building,
and institutional partnerships.

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