Arunachal Pradesh is looking at its hydropower resources as a major source of future investment and revenue, with projects capable of generating around 19,000 MW currently in different stages of development. The state government sees the sector as an important opportunity to strengthen its finances while supporting long-term infrastructure and economic growth.
A key part of the strategy is greater state participation in hydropower projects. Arunachal Pradesh could require around ₹15,000 crore for its equity contribution across the projects, with support from the Centre expected to help the state meet this requirement.
The state stands to benefit not only from its investment in the projects but also through its share of generated power. The government has highlighted the potential of these returns to create a recurring source of revenue once projects become operational.
Among the major developments is the 2,000 MW Lower Subansiri hydropower project, which is expected to be fully commissioned next year. Its completion could further increase the state’s access to power-related revenue and strengthen Arunachal Pradesh’s position in India’s energy landscape.
The scale of the proposed projects could also generate wider economic activity. Large hydropower developments typically require significant investment in construction, transportation, engineering, equipment, supporting infrastructure and associated services, creating opportunities for businesses across multiple sectors.
At the same time, the state is expected to balance its development ambitions with environmental and social considerations. Projects such as the proposed Siang Upper Multipurpose Project will need to go through feasibility studies, environmental assessments and public consultation processes before construction decisions are taken.
The government’s broader infrastructure push is also expected to complement the hydropower expansion. Improved roads, urban infrastructure and other connectivity projects can help create the supporting ecosystem required for large-scale energy investments.
With substantial hydropower capacity still to be developed, Arunachal Pradesh could emerge as one of the Northeast’s key energy investment destinations. The state’s focus is increasingly shifting from simply generating electricity to using hydropower assets to build long-term revenue, attract investment and support wider economic development.
