5 min readUpdated: Apr 9, 2026 12:01 PM IST
Assam and Meghalaya have refused to purchase any power in excess of their allocated share from Subansiri Lower hydro-electric project as this would “unnecessarily inflate their power purchase costs, a burden that ultimately impacts the end consumers.”
At a meeting of the North Eastern Regional Power Committee (NERPC) last month, both states have also said they have already made adequate arrangements to meet long-term power needs. Established in 2005 under the Electricity Act 2003, NERPC is a forum of the seven northeastern states for planning, development, and operation of the regional power sector.
Earlier, in January, Punjab State Power Corporation Limited (PSPCL) declined to procure its alloted share of 16 MW. “The State Commission has categorically disallowed procurement of power from Subhansiri Lower HEP on account of the tariff being provisional, excessive, and not aligned with economical procurement or consumer interest,” PPSCL wrote to Eastern Regional Power Committee.
Cost overrun is projected to shoot up Subansiri Lower’s power tariff from under Rs 2 per unit projected in 2009 to over Rs 7 per unit in 2026. The average national tariff of hydel power generated by the NHPC was Rs 3.15 per unit in 2023-24. According to NHPC, the “project cost increased from Rs 6,285 crores at the 2002 price level to approximately Rs 26,000 crores at the current price level, primarily due to the extended construction period, escalation charges, and interest during construction.”
Conceived as India’s largest hydel project, 2000-MW Subansiri Lower took off in 2005 but work remained suspended during December 2011 and September 2019 due to local resistance and court cases over issues of dam safety and downstream ecological fallout. The project still faces unresolved compliance issues such as restricting hydro peaking (water discharge) in the river to safeguard against the movement of elephants and other wildlife.
So far, three of eight 250MW units of much-delayed Subansiri Lower have commenced commercial operation. Half of Subansiri Lower’s power — 22% through ‘firm’ allocation, 13% as free power and 15% through unallocated central share — is envisaged for the north-eastern states.
It is the additional share from the “unallocated central pool” that Assam and Meghalaya are unwilling to absorb.
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“We don’t have a choice about the allocated share. But we do not require any additional power from Subansiri’s unallocated share. One reason is that the price calculations do not work out. Another is that we will soon get around 200MW from our own project — Leshka Stage-II — in the state,” said Sanjay Goyal, Commissioner & Secretary, Power, Meghalaya.
The 210 MW Myntdu Leshka Hydro Electric Project Stage-II is expected to be commissioned in 2027. The run-of-the-river project is an expansion to the existing 3×42 MW units operated on the Myntdu River by the Meghalaya Power Generation Corporation Limited (MePGCL) in Amlarem, West Jaintia Hills.
At the 37th Meeting of the statutory State Advisory Committee (SAC) of the Assam State Electricity Regulatory Commission (SERC) on January 21, managing director of Assam Power Distribution Company Limited (APDCL) Rakesh Kumar briefed the SEC members on the issue of increase in tariff over time.
“In certain cases, cost overruns in generation projects have also contributed to the increase; for example, the Subansiri project was initially envisaged at a tariff of around Rs 3 per unit, which has now increased to approximately Rs 7.70 per unit,” Kumar told the SEC.
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Of Subansiri Lower’s current generation of 750 MW, Assam’s allocated share is 78 MW (10.4%) with another 7.5MW (1%) as free power. While Meghalaya gets no free power, its firm allocation is 19MW (2.5%). From the unallocated central share, Assam has been allocated an additional 49.65 MW (6.62%) and Meghalaya 36.75 MW (4.9%), which they have refused to purchase.
The NERPC has asked Assam and Meghalaya to take up the matter “with proper justification for consideration” by Central Electricity Authority (CEA) and the Ministry of Power.
Last month, Assam submitted to the NERPC that APDCL has already done a number of power purchase agreements with upcoming plants for the required quantum of power to meet its future long-term demand.
“APDCL has not sought any quantum of power from the Subansiri Lower HEP in excess of its Share allocation from the “Firm Power” and the “Free Power” of the plant. Accordingly, the excess hydro allocation from the Subansiri plant will result in the increase in Power Purchase Cost for APDCL which have to be borne by the end consumers of the state,” it said.
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Meghalaya Power Distribution Company Limited also submitted that the state has “surplus hydro power, therefore it does not require the same.”
Until a revised directive is issued, said government sources, the current allocation and scheduling of power from Subansiri Lower will continue as per the present allocation.
