UPSC CURRENT AFFAIRS – 15th June 2025
Arunachal Declares 2025–2035 as ‘Decade of Hydropower’; Pushes Ahead with Siang Upper Project
Why in News?
The Arunachal Pradesh Cabinet, headed by CM Pema Khandu, has officially declared 2025–2035 as the “Decade of Hydropower”, aiming to harness the state’s immense hydropower potential and generate long-term revenue and strategic infrastructure growth. This also revives the controversial Siang Upper Multipurpose Project (SUMP).
Key Highlights
- Targeted Hydropower Capacity: The state plans to harness up to 58,000 MW, with investments of over ₹2 lakh crore, and expects ₹4,525 crore/year revenue by 2035 from 12% free power share in hydro projects.
- Escrow Account: Cabinet approved an escrow account to manage revenues from hydropower projects for effective, transparent reinvestment.
- Future-Ready Townships: Greenlight to New Yingkiong and New Geku Development Authorities for creating alternate towns above likely submergence zones.
- Necklace Road Survey: PWD tasked with surveying a road network above submergence-prone areas along the Siang River.
Focus on Siang Upper Multipurpose Project (SUMP)
- Capacity: 11,000 MW (making it one of India’s largest proposed dams).
- National Project Status: Declared by the Centre in 2008 for strategic counterbalance to China’s dam building on the Yarlung Tsangpo in Tibet.
- Local Resistance: Persistent protests from villagers in Siang, East Siang, and Upper Siang districts.
- Cabinet Strategy:
- Engage in continuous dialogue with Project Affected Families (PAFs).
- Conduct pre-feasibility studies only with local consultation.
- Offer fair compensation, solatium, and robust rehabilitation and resettlement packages.
Governance and Sustainability Approach
- Judicious Mix of Projects: Focus on mega, large, and small HEPs to balance ecological and developmental needs.
- Revenue as Strategic Tool: Use of free power revenue for industrial growth, urban development, and sustainability planning.
Strategic and National Implications
- Counters China’s hydro plans upstream.
- Enhances India’s energy security and grid balancing through clean energy.
- Involves key debates on federalism, tribal rights, environmental ethics, and national security.
Way Forward
- Transparent communication, scientific surveys, and inclusive development are key to balancing infrastructure goals with social justice.
- Implementation of climate-resilient hydropower planning and ESZ safeguards can help address long-standing environmental concerns.
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Economic Implications
For Indian Exporters
- These reforms reduce transaction costs and compliance hurdles
- Encourage a more competitive and efficient export environment
- Promote value addition in key sectors like leather
For Tamil Nadu
- The reforms particularly benefit the state’s leather industry, a major contributor to employment and exports
- Boost the marketability of GI-tagged E.I. leather, enhancing rural and traditional industries
For Trade Policy
- These decisions indicate a shift from regulatory controls to policy facilitation
Reinforce the goals of Make in India, Atmanirbhar Bharat, and India’s ambition to become a leading export power
Recently, BVR Subrahmanyam, CEO of NITI Aayog, claimed that India has overtaken Japan to become the fourth-largest economy in the world, citing data from the International Monetary Fund (IMF).
India’s rank as the world’s largest economy varies by measure—nominal GDP or purchasing power parity (PPP)—each with key implications for economic analysis.
