Agreement To Procure 252 MW Electricity from Arunachal Pradesh to Meet Future Power Needs

In the presence of Chief Minister Dr. Mohan Yadav, an electricity purchase agreement (PPA) was signed between MP Power Management Company (MPPMCL) and NHPC at Samatva Bhawan, Chief Minister’s residence, on Friday, as allocated by the Ministry of Power, Government of India. The MoU was exchanged as well. Based on the agreement, Madhya Pradesh will receive 252 megawatts of electricity allocated by the Central Ministry of Power from NHPC’s multipurpose hydroelectric project located in the Lower Dibang Valley district of Arunachal Pradesh. The power purchase agreement (PPA) was signed by Rakesh Thukral, Chief General Manager of MP Power Management Company, and Omkar Yadav, General Manager of NHPC.

Chief Minister Dr. Yadav, describing this agreement as significant, said that considering the future demand, besides conventional energy sources, power purchase agreements from various renewable energy sources are also necessary. Madhya Pradesh is an agriculture-dominated state. Electricity consumption is continuously increasing in Madhya Pradesh not only in domestic and industrial sectors but also in agriculture. Therefore, the future needs are also being assessed. Accordingly, considering the possibilities of increasing electricity demand in the coming years, it has been decided to purchase electricity from Arunachal Pradesh.

Rising Electricity Demand

There is a significant increase in electricity consumption in the industrial and agriculture sectors in Madhya Pradesh. In view of the current increase in power demand, it is being estimated that by the end of the current financial year, the demand may reach 20,000 Megawatts. This demand is expected to keep rising in the coming years.

Where is the Multipurpose Hydroelectric Project Located?

A large multipurpose hydroelectric project is being developed on the Dibang River in Arunachal Pradesh. The construction work of this project is in progress. It is expected to be completed and become operational by the financial year 2031-32.

Benefits to MP from the Agreement

The electricity obtained from this project will help meet the demand during the peak demand period in the Rabi season for more than 3 hours and for about 9 to 19 hours during the remaining period.

On this occasion, Additional Chief Secretary Energy Mr. Neeraj Mandloi, Managing Director of MP Power Management Company Mr. Avinash Lavania and Managing Director of NHDC Mr. Rajeev Jain were present.