Nagaland eyes 66 MW hydel expansion as ADB studies key projects amid rising demand and heavy dependence on external power supply
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KOHIMA — Two major hydroelectric projects in Nagaland—the 42 MW Lower Tizu and 24 MW Zungki—are currently under due diligence studies and detailed project report (DPR) strengthening for implementation by the Asian Development Bank (ADB), according to the Power department’s annual administrative report 2025–26.
The Lower Tizu HEP is located in Kiphire and Phek districts, while the Zungki HEP is in Kiphire district. The Centre has approved the two projects with estimated costs of INR 541.12 crore and INR 368.53 crore, respectively, and both are to be funded by the ADB.
In addition, the state government has proposed another 24 MW Tizu Valley hydroelectric project in Phek district to the Centre for funding under external aided projects (EAP) through ADB.
The report highlights the state’s growing power demand and dependence on external supply. Peak demand currently stands at 193 MW and is projected to rise to 304 MW, while off-peak demand is 130 MW.
Also read: Nagaland CM reviews road, tourism projects in Lower Tizu during 4-day visit
Against this, the state-owned installed capacity is only 29.4 MW, resulting in about 90% of power being sourced from central public sector undertaking generating stations in the Northeast.
During the monsoon season, central sector average availability is 126 MW, dropping to 98 MW in the lean season. State-owned average availability is reported at 150 MW during monsoon and 112 MW during the lean season.
The report stated that this dependence places a significant burden on the state exchequer due to high power purchase costs, underscoring the need to enhance generation capacity for both meeting demand and improving the state’s economic position.
It added that expanding hydro generation is also critical for ensuring energy security and meeting Renewable Purchase/Consumption Obligations (RPO/RCO).
At present, the state has developed only one major project — the 24 MW Likimro Hydroelectric Project in Kiphire district.
Other operational projects include 1 MW Lang SHP in Noklak, 1 MW Tehok SHP in Mon, 2.4 MW Duilumroi SHP in Peren, and 1 MW Ponglefo SHP in Kiphire. These projects together generated 84.42 million units of energy between April and December 2025.
On the financial front, the revenue target for 2025–26 has been set at INR 516.64 crore. Revenue collection up to December 2025 stood at INR 203.88 crore, marking a 6.21% increase compared to the previous financial year.
The report also detailed power purchase and revenue trends over the past six years. Power purchase stood at INR 451.02 crore in 2020–21 against revenue collection of INR 175.38 crore. In 2021–22, revenue collection was INR 217.12 crore against INR 459.47 crore spent on power purchase.
In 2022–23, INR 553.95 crore was spent with revenue of INR 293.93 crore, while in 2023–24, INR 557.67 crore was spent against INR 296.71 crore collected. In 2024–25, power purchase was INR 550.27 crore with revenue of INR 300.02 crore.
For 2025–26 (up to the third quarter), INR 396.7 crore has been spent on power purchase, while revenue collection stands at INR 203.88 crore.