A significant clean energy initiative in Assam has been halted after the Central government officially retracted its request for a $434.25 million loan from the Asian Development Bank (ADB) intended for the “Assam Solar Project.” The cancellation, effective May 23, 2025, follows the ADB’s funding approval just seven months earlier, on October 24, 2024.
This ambitious project aimed to establish a 1000 MW solar photovoltaic facility, featuring a pilot battery energy storage system, at Khatkhati-Longkathar in Assam’s Karbi Anglong district. It also sought to enhance the state’s capability to execute public-private renewable energy transactions.
A $1.0 million technical assistance grant from the Clean Energy Fund was associated with the loan. This funding aimed to improve the skills of the Assam Power Distribution Company Limited (APDCL) in renewable energy, develop a pipeline for solar projects, and foster renewable energy skills and livelihoods.
The project was expected to enhance the state’s capacity for renewable electricity generation and encourage private investment in solar capacity. However, no loan or project agreements were ever finalized. The decision to withdraw the proposal was communicated to the ADB in a letter dated May 23, 2025.
The official letter, addressed to Mio Oka of the ADB, stated that the withdrawal aligns with the Assam government’s request. It confirmed that the ADB should take appropriate further actions. Signed by Dinesh Kumar Shukla of the Government of India, the letter indicated that the decision received approval from relevant authorities. The ADB has informed its Board of Directors about this cancellation, similar to scenarios where a loan approval lapses because the agreement has not been signed within 12 months.
The rationale behind the Assam government’s request for the withdrawal remains undisclosed. Northeast Now has reached out to APDCL’s public relations officer for comment but has yet to receive a response.
The project faced strong opposition from the indigenous Karbi and Rengma Naga communities in Karbi Anglong, primarily due to fears of land loss. The initiative threatened to displace many tribal residents across 23 villages, jeopardizing the livelihoods of over 20,000 people. The proposed acquisition of around 18,000 bighas (about 2,400 hectares) raised concerns over environmental degradation, including the destruction of numerous trees and the potential obstruction of a key elephant corridor. Many residents, who opposed the solar power project, have welcomed the news of the loan withdrawal.
Vikram Hanse, a leader from the All-Party Hills’ Leader Conference (APHLC), expressed that this loan withdrawal could be the first step toward entirely scrapping the project. He stressed the necessity for the Assam government to abandon the initiative to ensure that tribal land, protected under the Sixth Schedule, remains with its rightful owners.
“Protests from Karbi Anglong’s residents have forced the Assam government into a defensive stance. This marks an important initial victory for the indigenous tribal population,” remarked Subrat Talukdar from the Joint Struggle Committee for Land Rights, which opposes the project.
Talukdar implored the government not to pursue projects that could endanger people’s lives and livelihoods, emphasizing the vital importance of land preservation for the Assamese identity.
Karbi Anglong is rich with diverse tribal communities, including the Karbi, Rengma Naga, Bodo, Adivasi, and Kuki. Governed under the Sixth Schedule of the Indian Constitution, the Karbi Anglong Autonomous Council ensures the protection of cultural and land rights for these indigenous groups. For over a century, the Karbi and Rengma Naga peoples have cultivated the fertile lands of Khatkhati-Longkathar, growing essential crops. These agricultural practices are integral to their cultural identity.
“This land is our mother,” declared Semson Teron, a young law graduate and protest leader. “For generations, we have lived, farmed, and raised our families here. To take it away for a solar project robs us of our history and future.” His comments resonate with other residents facing displacement without clear plans for relocation or compensation.
Mohori Ingti, a farmer from Longkathar, emphasized the land’s importance, stating, “This land belongs to our ancestors. We cannot allow anyone to take it from us by force — they do not have our consent.” According to Hillo Rengma, a local pastor, their community has lived in the area for about 40 years, and the proposed projects signify the loss of their homes and identity.
The ADB’s Resettlement and Indigenous Peoples Plan revealed nearly 2,400 hectares would be needed for the solar project, impacting lands traditionally owned by 1,277 tribal families. This move has been contested as it violates constitutional protections granted to tribal communities.
Local MP Ajit Kr. Bhuyan raised these concerns in the Rajya Sabha, stating that the state government is placing corporate interests over indigenous rights, which could result in significant losses for the people of Karbi Anglong.
Moreover, the solar project poses substantial environmental risks. The Khatkhati-Longkathar area is part of the ecologically sensitive Kaziranga-Karbi Anglong landscape, home to about 1,700 elephants. Environmentalists warn that the construction could obstruct a critical elephant corridor, heightening human-wildlife conflicts.
Birson Tisso, a farmer whose family relies on lemongrass farming, voiced his concerns regarding the wildlife impacts. He stated, “We can’t grow paddy here because of the elephants,” pointing out the recurring issues with wildlife damaging crops. Approximately 30 out of his 100-bigha plantation are slated for acquisition.
The project’s Initial Environmental Examination highlighted the presence of a not-yet-registered elephant corridor close to the site and noted plans to cut down over 10,000 trees.
Anita Mech from APHLC remarked, “This situation extends beyond losing crops; it threatens the ecosystem that sustains both people and wildlife.”
Despite public concerns, the Karbi Anglong Autonomous Council remains tight-lipped about the project. Officials at the KAAC and the Divisional Forest Officer’s office have refrained from commenting on the matter, raising further questions about their involvement.
Original Source: https://nenow.in/north-east-news/assam/asian-development-bank-withdraws-assam-solar-project-loan-at-centres-request.html
Category: Assam,Environment,Northeast News,Top News
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Publish Date: 2025-05-31 23:55:00
