Assam Power Sector Row Deepens as Employee Bodies Oppose Proposed Adani PPA

A fresh controversy has surfaced in Assam’s power sector after organisations representing electricity employees, engineers, and pensioners jointly raised objections to the state government’s proposed long-term power purchase agreement (PPA) with the Adani Group.

The groups, working under the banner of the Coordination Committee of Electricity Employees, Engineers & Pensioners, have publicly accused the government of making key decisions “without transparency” and keeping both consumers and power department staff “in the dark.” Their concerns have sparked intense debate, especially because the proposed agreement involves a massive thermal power project that could shape Assam’s power pricing for decades.

While the government is preparing to move ahead with its new power policy, the committee argues that such a crucial deal should not be finalised quietly, without wider public discussion.

Why the Proposed PPA Is Becoming a Major Issue

According to the committee, the Assam Power Distribution Company Limited (APDCL) is preparing to sign a 100% long-term PPA with the Adani Group for purchasing electricity from a planned 3,200 MW thermal power project in Chapar, Dhubri. The project is expected to come up under the Assam Thermal Power Policy 2025.

For many employees and engineers, the core issue is not the technology or the project itself, but the scale and duration of the deal.

Concerns About a Single-Source Long-Term Agreement

Employee bodies say that relying entirely on one private company for long-term energy supply could create a risky dependency. They argue that power purchase agreements usually involve multiple suppliers to avoid financial pressure on consumers.

One senior engineer, who preferred not to be named, said something that many in the sector agree with:

“When one company controls the entire long-term supply, the bargaining power of the state reduces. This is a basic principle in the power sector.”

He added that Assam should evaluate all options before committing to a large project.

Allegations of a Lack of Transparency

One of the strongest accusations from the coordination committee is that the government is not maintaining proper transparency.

“Public Mein Kuchh Nahi Bataya Gaya”

The committee claimed that neither the public nor the electricity board employees were informed about the details of the proposed PPA.

They said most of the information became public only after internal discussions leaked. According to them, decisions involving thousands of crores of future payments should not be taken without open consultations.

While the government has not directly commented on these claims yet, people in the sector say discussions around PPAs often stay within official circles until documents are finalised. However, in this case, the scale of the project has intensified calls for openness.

Financial Concerns for Consumers

A major worry among employee bodies is the future cost of electricity. Thermal power projects usually involve higher production costs compared to hydropower or renewable sources.

Engineers say that a long-term PPA, especially one tied to a single corporate producer, can lock consumers into fixed or semi-fixed tariffs for a long period. If production costs rise, consumers may end up paying more.

Potential Long-Term Tariff Burden

Experts say that if the PPA terms are not negotiated carefully, APDCL could face financial strain, which eventually trickles down to consumers.

A retired power department officer explained:

“Assam has struggled with financial losses in the power sector for years. A hasty agreement could worsen the gap between buying and selling rates.”

He pointed out that state governments must calculate long-term tariff impacts properly to avoid future price hikes.

The Chapar Thermal Project: What We Know So Far

Although official documents are still limited, here is what is currently known about the project:

• Capacity: 3,200 MW
• Location: Chapar, Dhubri district
• Policy Framework: Assam Thermal Power Policy 2025
• Proposed Buyer: APDCL
• Developer: Adani Group

The project, if approved, would likely become one of the largest thermal power projects in Assam’s history. For some, this is a positive development because the state still depends heavily on power purchased from outside. But for others, it raises concerns about environmental impact, coal sourcing, and long-term costs.

Employee Bodies Want Wider Consultation Before Any Agreement

The coordination committee has urged the government to hold public consultations and internal discussions before proceeding.

Their Key Demands Include:

• Making all PPA details public
• Allowing employee bodies to review the proposal
• Exploring alternative power sources
• Ensuring tariffs remain affordable
• Maintaining transparency throughout the process

They argue that such a major deal should be debated openly, especially since it could shape electricity bills for years.

Some members also questioned why the state is prioritising thermal power at a time when many regions in India are shifting towards renewable sources. They believe Assam should invest more in hydropower, solar, and other clean energy options.

Government’s Position: Still Unclear

As of now, the state government has not issued a detailed response to the objections raised by the committee.

Sources in the power department say that the PPA is still “under consideration” and that nothing has been finalised yet. They also noted that modern mega-projects usually follow lengthy approval processes, including environmental clearances and financial reviews.

Until the government releases an official statement, the debate will likely continue.

Why This Issue Matters for Assam

Impact on Electricity Bills

Every major PPA affects the cost of electricity for lakhs of households. If the state buys costlier power, consumers feel the impact sooner or later.

Future Energy Security

Assam’s energy demand is steadily rising due to urban growth and industrial expansion. A large thermal project may help reduce dependence on buying power from other states.

Environmental Considerations

Thermal power projects, especially coal-based ones, come with environmental challenges. Citizen groups are likely to raise questions about pollution, land acquisition, and waste management once more details emerge.

Political and Economic Impact

Power tariffs are a sensitive issue in any state. If the deal becomes controversial, it may carry political consequences as well.

FAQs

1. What is a Power Purchase Agreement (PPA)?

A PPA is a long-term contract where a state agrees to buy electricity from a power producer at a pre-decided rate.

2. Why are employee groups opposing the Assam-Adani PPA?

They claim the government is moving ahead without transparency and fear the deal may increase tariffs for consumers.

3. Is the agreement final?

No, the government has not confirmed the final signing of the PPA.

4. Why is the project controversial?

Because it involves a large 3,200 MW thermal plant and a 100% long-term PPA with a single company.

5. What happens next?

The government may issue a clarification or hold consultations, depending on public and internal pressure.

For more updates from Assam, you may also like our coverage of Kapil Dev’s visit to the historic Digboi Golf Course: https://tharkitech.com/kapil-dev-graces-historic-digboi-golf-course/”