Key Points

The agreement was formalised in Bhopal between the MP Power Management Company and NHPC, with the power allocation sanctioned by the Union Ministry of Power.

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, in the presence of Chief Minister Dr Mohan Yadav.

Under the agreement, Madhya Pradesh will receive 252 MW from NHPC’s multipurpose hydropower project located in the Lower Dibang Valley district of Arunachal Pradesh.

The project, being developed on the Dibang river, is expected to be commissioned by 2031–32.

Officials noted that the electricity from this project will help meet peak demand for over three hours during the Rabi season and between nine to nineteen hours during other periods.

Chief Minister Yadav described the agreement as a forward-looking step to ensure energy security for the state’s growing agricultural and industrial sectors.

He emphasised that Madhya Pradesh, being an agriculture-based state, is witnessing a steady rise in electricity consumption, particularly in rural and irrigation-intensive areas.

The state’s total power demand is projected to reach 20,000 MW by the end of the current financial year, power department officials said.

The Lower Dibang Valley project is one of India’s largest multipurpose hydropower initiatives, designed not only to generate clean energy but also to aid in flood control and water management in the northeastern region.

Its integration into Madhya Pradesh’s grid reflects a broader national strategy to promote inter-state energy cooperation and reduce dependence on fossil fuels.

Officials from the energy department said that this long-term power purchase will enhance grid stability and support the state’s transition toward sustainable energy.

The agreement also aligns with Madhya Pradesh’s broader energy roadmap, which includes investments in solar and wind power under various central schemes.

With this MoU, Madhya Pradesh positions itself among the leading states in leveraging hydropower to meet future energy needs while contributing to national climate goals.

- IANS