India : Preparing the Nagaland Hydro Power Development Project

Project Name

Preparing the Nagaland Hydro Power Development Project

Project Number

57203-001

Country / Economy

• India

Project Status

Active

Project Type / Modality of Assistance

• Technical Assistance

Source of Funding / Amount

TA 10160-IND: Preparing the Nagaland Hydro Power Development Project

Source	Amount
Technical Assistance Special Fund	US$ 225,000.00

Operational Priorities

• OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability

Sector / Subsector

• Energy / Renewable energy generation - small hydro

Gender

No gender elements

Description

The Nagaland Hydro Power Development Project was identified during a visit to the state in 2019 to assess the power sector infrastructure needs. Further, the Preliminary Project Report (PPR) for development of Hydro Power Projects in Nagaland was submitted by the Department of Power, Nagaland (DOPN) to Ministry of Development of North Eastern Region (MDONER) seeking ADB technical assistance grant for undertaking detailed due diligence of the two hydro power projects in the state. DOPN is awaiting approval on the PPR. The project components include studies for hydro power development projects.

The state has potential of ~180 MW for small hydro projects and ~1,450 MW for large hydro projects. There are three major hydroelectric projects (HEP) in the state, which are at the initial stage of preparation. ADB has identified the proposed Nagaland hydro power development project during its visit to the state in 2019 to assess the power sector development needs of the state. DOPN has sought financial assistance from ADB for project financing for HEP where the initial site assessments were carried out by the state. The proposed investments of new hydropower plants will increase the generation capacity of the state using indigenously available hydro resources, thereby reducing the power imports and improve the energy security. DOPN has submitted PPRs of the project for Department of Economic Affairs (DEA), Government of India approval in 2021. The PPRs for the proposed Nagaland hydropower development project was approved by DEA, Government of India and posed to ADB in 2022.

This TA will support the preliminary project preparatory assessment to review the feasibility report and assessment carried out by the state to confirm the potential of development of the proposed hydropower projects. The assessment will cover initial environmental assessment, social safeguard assessment, ecological assessment (aquatic and terrestrial), technical assessment and financial assessment.

Project Rationale and Linkage to Country/Regional Strategy

DOPN is responsible for the supply and distribution of electricity in the State of Nagaland (the state) which has a total area of 16,527 square kilometers. DOPN serves 317,210 consumers of various categories with an annual energy consumption of about 705.97 million Units (MU) for the FY 2021-22. The electricity peak demand of the state for FY 2022-23 was 168 mega-watt (MW) against which 167 MW was peak met, resulting in a power deficit of 0.5%. The electricity requirement of the state for FY 2022-23 was 910 MUs against which 869 MUs was peak supplied, resulting in a supply deficit of 4.5%. The supply deficit is very high compared to All India power supply deficit of 0.5% and that of All North-eastern states of 0.4%.

The cumulative power generation sources allocated to the state is ~ 230 MW. The state is dependent on outside sources for meeting its energy requirement. The state has share from Central Sector Generating Stations (CSGS) and total firm share from the CSGS of North Eastern Electric Power Corporation Limited, National Hydroelectric Power Corporation, National Thermal Power Corporation and ONGC Tripura Power Company Limited is ~202 MW. DOPN has its own hydro generation capacity of 28 MW at Likhimro Hydro Power Project (24 MW) and other mini hydro projects. Further, out of the total consumer served by DOPN, 90% of the consumers are domestic consumers/households. Therefore, it is imperative for the state to enhance the state-owned generation capacity to reduce dependency on the CSGS to be able to serve its population.

This TA is aligned with (i) pillars 2 of ADB's country partnership strategy for India, 2023-2027; (ii) Paris Agreement in developing indigenous renewable energy projects; (iii) the Sustainable Development Goals (SDGs) 7 and 13; and (iv) ADB's Strategy 2030 operational priorities of (a) strengthening governance and institutional capacity; and (b) tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability.

Impact

Project Outcome

Description of Outcome

Progress Toward Outcome

Implementation Progress

Description of Project Outputs

Status of Implementation Progress (Outputs, Activities, and Issues)

Geographical Location

Nagaland

Summary of Environmental and Social Aspects

Environmental Aspects

Involuntary Resettlement

Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design

During Project Implementation

Contact

Responsible ADB Officer

Horiguchi, Kazuhiro

Responsible ADB Department

Sectors Group

Responsible ADB Division

Energy Sector Office (SG-ENE)

Executing Agencies

Department of Power Nagaland

Timetable

Concept Clearance

-

Fact Finding

-

MRM

-

Approval

09 Oct 2023

Last Review Mission

-

Last PDS Update

23 Oct 2023

Funding

TA 10160-IND