Madhya Pradesh has signed a power purchase agreement (PPA) with the National Hydroelectric Power Corporation (NHPC) for the supply of 252 megawatts of electricity. The electricity will be sourced from NHPC’s multipurpose hydroelectric project being developed in the Lower Dibang Valley district of Arunachal Pradesh.

The agreement was signed between MP Power Management Company Limited (MPPMCL) and NHPC in the presence of Madhya Pradesh Chief Minister Dr Mohan Yadav at the CM House in Bhopal.

The Dibang project, a major multipurpose hydroelectric initiative on the Dibang River, is currently under construction and is expected to be completed and operational by the financial year 2031-32.

Electricity from this project will support Madhya Pradesh in meeting its power needs, particularly during peak demand in the Rabi season for over 3 hours and for 9 to 19 hours during other periods.

Speaking at the event, Chief Minister Dr Mohan Yadav highlighted the increasing electricity demand in the state, especially in the industrial and agricultural sectors. He noted that the state's power demand is projected to reach 20,000 megawatts by the end of the current financial year and is expected to continue rising.

Dr Yadav emphasized the importance of planning for future energy needs, stating that alongside conventional energy sources, agreements to purchase power from renewable and other regions are vital. He pointed out that as an agriculture-dominated state, Madhya Pradesh's energy consumption is growing steadily across domestic, industrial, and agricultural sectors.

The state government is actively assessing future energy requirements and has decided to secure electricity from Arunachal Pradesh as part of its long-term strategy to meet increasing demand.