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The Economy of India's Northeast

Hydropower in the Northeast

Why the Northeast, especially Arunachal Pradesh, has huge hydropower potential, the big projects underway, and the environmental and social debates they raise.

The Northeast’s rivers, especially in Arunachal Pradesh, carry enormous amounts of water from the Himalayas. The region is estimated to hold a large share of India’s hydropower potential.

Big projects

  • Subansiri Lower project, on the Assam-Arunachal border, around 2,000 MW, with units starting in 2023-24 after long delays due to protests.
  • A proposed very large project on the Siang river in Arunachal, partly as a response to China’s plans for a huge dam on the Yarlung Tsangpo (the Brahmaputra’s upper course), which China began building in 2025.

Benefits

  • Clean electricity for India’s energy transition.
  • Revenue for states through free power and royalties.
  • Flood control and water storage.

Concerns

  • Displacement of indigenous communities.
  • Downstream effects on Assam’s floodplains, fisheries and farmland.
  • Earthquakes: the region is seismically active.
  • Biodiversity loss in rich forests.
  • Cost overruns and delays.

The China factor

Chinese dams upstream raise concerns about water flows, making hydropower in the Northeast a strategic issue as well as an economic one.

Local opposition, especially in Arunachal and Assam, has delayed several projects. Consultation and fair benefit sharing are key.

The downstream worry

Farmers along the Subansiri river in Assam worry that sudden water releases from an upstream dam could flood their fields. Protests delay the project for years until safety measures are agreed.

Thinking hydropower has no downsides because it's renewable

Dams can displace people, affect downstream areas and carry seismic risks.

Key takeaways
  • The Northeast, especially Arunachal, has huge hydropower potential.
  • Subansiri Lower (around 2,000 MW) began generating in 2023-24 after long delays.
  • A Siang project is proposed partly in response to China's upstream dam.
  • Displacement, downstream effects and earthquakes are concerns.
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