Page 44 - Policy Economic Report - December 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Shri Bhupender Gupta, CMD, NHPC, expressed his heartfelt gratitude to the Ministry of Power, the
Governments of Arunachal Pradesh and Assam, former NHPC leadership, the entire Subansiri Project
team, all key stakeholders and partners for their dedicated support in making this milestone achievement
possible. He further stated that the project will strengthen the national grid, support sustainable
development in the North-East and provide reliable renewable energy to meet growing demand.

With the commissioning of Unit # 2, the Project is moving swiftly towards commissioning of 3 Units of 250
MW each shortly, followed by phased commissioning of the remaining four units during 2026-27. Upon
full commissioning, the 2000 MW Subansiri Lower Hydroelectric Project will make a significant
contribution to India’s renewable energy capacity, enhance national grid resilience and usher in a new era
in massive clean energy contribution.

As India’s largest hydropower project, the Subansiri Lower Project comprises 8 units of 250 MW each and
is designed as a Run-of-the-River scheme with small pondage, diverting water through eight Head Race
Tunnels (HRTs) to generate 7,422 million units (MU) of renewable electricity annually contributing
significantly to India’s green energy future. The project features the largest dam in North-East India, a
116-metre-high concrete gravity dam, which not only strengthens regional infrastructure and grid
resilience but also enhances flood moderation and water management in the Subansiri River basin.

The Subansiri Lower H.E. Project exemplifies engineering excellence, featuring India’s heaviest hydro
generator rotors, largest stators and biggest main inlet valves, along with innovations such as the nation’s
largest aggregate processing plants, highest-capacity batching plant and first-ever use of Rotec’s Tower
Belt for dam concreting in India. As the first cascaded dam on the Subansiri River, it provides flood
moderation with a 442 million cubic metre flood cushion. With a gross reservoir storage of 1,365 million
cubic metres at FRL, about one-third remains empty during floods to absorb excess water and protect
downstream communities.

NHPC has implemented extensive riverbank protection and erosion control measures along the Subansiri
River, completing works up to 30 km downstream and extending them up to 60 km. with an investment
of about ?522 crore. This has effectively stabilized the riverbanks for over five years. In addition, NHPC is
supporting downstream community development through livelihood programs in piggery, sericulture and
handloom, developed with IRMA. These initiatives, now in production, benefit around 5,000 women
farmers and promote sustainable socio-economic development in the region.

Apart from supplying electricity to 16 beneficiary states across India, the Subansiri Lower H.E. Project will
provide free power allocations to Arunachal Pradesh and Assam, while the North-East region will receive
1,000 MW from the project, significantly strengthening regional energy availability.

The project has generated strong socio-economic benefits for the region by engaging around 7,000 local
people daily during its construction phase and creating numerous direct and indirect jobs through
contractors, service providers and local markets. With the commissioning of the project and the
availability of continuous power, new small-scale industries are expected to emerge, further expanding
employment and business opportunities while helping reduce outmigration. Additionally, the project is

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