Eco viability question stares at Loktak Downstream Project

    02-Apr-2025
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By Our Staff Reporter
IMPHAL, Apr 1: Loktak Downstream Project which was conceptualised in the 1980’s and investigation of which was completed by the National Hydro Electric Power Corporation (NHPC) in 1999 is now staring at a big question of feasibility and viability.
Notably, the NHPC’s Chief Engineer tasked with executing the project was shot dead in the past.
Nonetheless, considering the chronic problem of power shortage faced by Manipur, the previous O Ibobi-Government made serious efforts to execute the project with the hope of making up for the State’s power shortage.
The project which would have two generating units and a total generation capacity of 66 MW was supposed to be executed by the Loktak Downstream Hydro Electric Corporation Limited which is a joint venture of NHPC and the Government of Manipur.
The project should be operated by constructing a 20 metre high concrete gravity dam from the bed of Leimatak River where water released from Loktak Hydroelectric Project is channelised.  
In order to move heavy and large machines to the project site, a new road with bridges was constructed from Tupul to the project site during the time of Chief Minister O Ibobi.
Even though Loktak Downstream Project does not require any large water reservoir, the project has been delayed for years and  the Government of Manipur  is unable to take a decision on whether the project should go ahead or it should be aborted, sources said.
Power generated from Loktak Downstream Project must be sold at Rs 6 to 7 per unit. It remains a big question whether Manipur and other North Eastern States would be able to buy power from Loktak Downstream Project at Rs 6-7 per unit.
Generally, power generated by hydroelectric projects is sold at cheaper prices. The Government of Manipur is buying power from Loktak Hydroelectric Project at Rs 3.40 per unit.
After adding transmission and other charges, the Government is levying power tax of Rs 5.50 per unit on consumers, said the sources.
If power is purchased at Rs 7 per unit, the Government must collect power tax of at least Rs 9 per unit from consumers but it would be extremely difficult for the Government authorities to collect power tax at the rate of Rs 9 per unit. As such, Loktak Downstream Project is not economically viable, the sources said.
Because of the prolonged delay in executing the project, multiplication of the project cost over the decades and due to many other factors, Loktak Downstream Project is no longer economically viable.
Nonetheless, the Government of Manipur has not yet taken a final decision on the project, the sources added.