on arunachal’s egregious hydel plans

between december and now, i worked on a set of stories about the hydel projects coming up in arunachal pradesh. between 2006-09, this state in north-eastern india signed 130 MoUs with about 55 companies allocating them places where they could build dams. several things about these MoUs were surprising. these MoUs translated into 130 dams on 8 river basins — probably the world’s highest concentration of hydel projects.

it was not clear why the state needed to sign so many MoUs in such a short span of time. it was not clear why it had signed projects for more MW-age than what the centre had budgeted for. for its part, while the state government said this rush just showed its urgent desire for development, many of the companies it had tied up with had little or no background in hydel power generation. there were other puzzles. for some reason, the state had turned its back on multi-purpose projects (which can also do flood control) and was only pushing hydel power projects.

stories seeking to uncover the hydel mess in arunachal pradesh began popping out from today. the first one, a lead story which introduces the significance of what has happened in arunachal, compares this to coalgate.

Hydel in Arunachal has four parallels with the controversial coal block allocations of 2006-09. One, Arunachal gave out more hydel projects than it needed to. Two, the state used discretionary powers to allot dam sites, increasing the clout of state politicians, bureaucrats and local brokers to influence allocations. Three, besides sector heavyweights such as Reliance Power, Jindal Power and NHPC, the list of 55 companies featured those in unrelated businesses such as seeds, travel, highways and real estate. Four, construction has barely begun. The state doesn’t have roads or transmission lines. Companies don’t have money and even genuine players are looking to exit.

the main story explores why few of the projects have gotten off the ground. and ends up concluding that something similar to the ill-fated thermal power plant boom i wrote about earlier took place in arunachal. companies rushed in fecklessly. the state signed more projects than it could have supported.

As excited companies began taking a closer look at their new projects, they realised the supporting infrastructure— the primary responsibility of the state and the Centre—to add 40,000 MW in one go was not there. Road connectivity from highways to project sites was either missing or inadequate to support heavy vehicles. Also missing was power, transmission towers and administrative infrastructure like surveying staff and land records…

…Capital is missing too. All these projects are public-private partnerships (PPPs), with Arunachal bringing in equity of 11-26%—or Rs13,000 crore, according to Paliwal. In 2012-13, Arunachal’s entire budget was Rs3,535 crore. “We don’t know how the government plans to raise this money or if they have made any budgetary provisions,” says Kawale.

the motivations of the companies are easily understood. the main story elaborates on those. but what about the state government? why did it sign so many MoUs? 130 MoUs on 8 river basins? the answers, as ever, lies in political funding.

In April 2007, Gegong Apang was ousted and replaced by the then power minister, Dorjee Khandu. The MoU signing accelerated: 101 between February 2006 and March 2009. Brokers and fixers made money by connecting companies with state officials and politicians, who acquired new muscle overnight. Alleges Tapir Gao, state convenor of the BJP: “Unofficial payments made to the Congress ranged between Rs10-15 lakh per MW.” During that signing spree, Arunachal added 39,000 MW. Current and aspiring MPs and MLAs began lobbying for hydel projects to be allowed in their constituencies. Agrees Jarjum Ete, a Congresswoman and a Panchayati Raj activist: “All legislators have benefited from MoU signings in their localities.” At the same time, power has become a prized portfolio. Each of the three CMs after Apang retained the power portfolio.

that is how it is. more stories in the days to come.



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I am an Indian journalist with interests in energy, environment, climate and India’s ongoing slide into right-wing authoritarianism. My book, Despite the State, an examination of pervasive state failure and democratic decay in India, was published by Westland Publications, India, in January 2021. My work has won the Bala Kailasam Memorial Award; the Ramnath Goenka Excellence in Journalism Award; and five Shriram Awards for Excellence in Financial Journalism. Write to me at despitethestate@protonmail.com.

Reviews

…une plongée dans les failles béantes de la démocratie indienne, un compte rendu implacable du dysfonctionnement des Etats fédérés, minés par la corruption, le clientélisme, le culte de la personnalité des élus et le capitalisme de connivence. (…a dive into the gaping holes in Indian democracy, a relentless account of the dysfunction of the federated states, undermined by corruption, clientelism, the cult of the personality of elected officials and crony capitalism).” Le Monde

…a critical enquiry into why representative government in India is flagging.Biblio

…strives for an understanding of the factors that enable governments and political parties to function in a way that is seemingly hostile to the interests of the very public they have been elected to serve, a gross anomaly in an electoral democracy.” Scroll.in

M. Rajshekhar’s deeply researched book… holds a mirror to Indian democracy, and finds several cracks.The Hindu

…excels at connecting the local to the national.Open

…refreshingly new writing on the play between India’s dysfunctional democracy and its development challenges…Seminar

A patient mapping and thorough analysis of the Indian system’s horrific flaws…” Business Standard (Image here)

33 മാസം, 6 സംസ്ഥാനങ്ങൾ, 120 റിപ്പോർട്ടുകൾ: ജനാധിപത്യം തേടി മഹത്തായ ഇന്ത്യൻ യാത്ര… (33 months, 6 states, 120 reports: Great Indian journey in search of democracy…)” Malayala Manorama

Hindustan ki maujooda siyasi wa maaashi soorat e hal.” QindeelOnline

What emerges is the image of a state that is extractive, dominant, casteist and clientelist.Tribune

…reporting at its best. The picture that emerges is of a democracy that has been hijacked by vested interests, interested only in power and pelf.Moneycontrol.com

Book lists

Ten best non-fiction books of the year“, The Hindu.

Twenty-One Notable Books From 2021“, The Wire.

What has South Asia been reading: 2021 edition“, Himal Southasian

Interviews

Journalism is a social enterprise…,” Booksfirst.in.

Democratic decay at state level: Journalist M Rajshekhar on book ‘Despite the State’,” The News Minute.

Covid-19 en Inde : “des décès de masse” dont un “État obscurantiste est responsable,” Asialyst.

Allusions/Mentions

JP to BJP: The Unanswered Questions“.
Mahtab Alam’s review of “JP to BJP: Bihar After Lalu and Nitish”.

Urban History of Atmospheric Modernity in Colonial India“. Mohammad Sajjad’s review of “Dust and Smoke: Air Pollution and Colonial Urbanism, India, c1860-c1940”.

Westland closure: Titles that are selling fast and a few personal recommendations,” by Chetana Divya Vasudev, Moneycontrol. (Because this happened too. In February, a year after DtS was released, Amazon decided to shutter Westland, which published the book. The announcement saw folks rushing to buy copies of Westland books before stocks run out.)

Time to change tack on counterinsurgency” by TK Arun, The Federal.

All Things Policy: The Challenges of Governing States” by Suman Joshi and Sarthak Pradhan, Takshashila Institute (podcast).

The Future of Entertainment“, Kaveree Bamzai in Open.

On What India’s Watching“, Prathyush Parasuraman on Substack.

The puppeteers around us“, Karthik Venkatesh in Deccan Herald.

Will TN election manifestos continue ‘populist’ welfare schemes?“, Anna Isaac for The News Minute.

Why wages-for-housework won’t help women“, V Geetha in Indian Express.

The poor state of the Indian state“, Arun Maira in The Hindu.

Book discussions

12 November, 2022: Stop Loss: Overcoming the systemic failures of the Indian State. Tata Literature Festival, Mumbai.

26 December, 2021: Rangashankara, Bangalore, a discussion with Dhanya Rajendran.

16 November: Rachna Books, Gangtok, a discussion with Pema Wangchuk.

29 August: Books In The Time of Chaos, with Ujwal Kumar.

21 May: Hyderabad Lit Fest with Kaveree Bamzai and Aniruddha Bahal.

28 March: Paalam Books, Salem, Tamil Nadu.

19 March: The News Minute, “Citizens, the State, and the idea of India

6 March: Pen@Prithvi, with Suhit Kelkar

20 February: A discussion between scholars Usha Ramanathan, Tridip Suhrud, MS Sriram and me to formally launch Despite the State.

6 February: DogEars Bookshop, Margoa.

5 February: The Polis Project, Dispatches with Suchitra Vijayan.

30 January: Founding Fuel, “Systems Thinking, State Capacity and Grassroots Development“.

25 January: Miranda House Literary Society