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NHPC proposal of forest land as collateral rejected
Financial Express Hyderabad
|December 10, 2025
THE ENVIRONMENT MINISTRY has turned down a NHPC proposal to use assets located on forest land as collateral to raise funds for the Subansiri Lower hydel projectwhich is facing an over 300% cost escalation.
The project is located on the Arunachal Pradesh-Assam border.Official records show that "NHPC requested for an noC for using their assets located on the forest land for collateral purpose for raising funds from the financial institutions to meet the capital expenditure of Lower Subansiri hydro electric Project" and the Arunachal Pradesh government, subsequently, sought a clarification from the Ministry on the matter.
The environment ministry, examined NHPC's "proposal to mortgage assets on diverted forest land" and ruled that it is "not tenable" under the provisions of the Forest Conservation Act now known as the Van (Sanrakshanevam Samvardhan) Adhiniyam, 1980.
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