Written By: Mahesh Deka, Chandan Borgohain
Guwahati/Khatkhati: A major clean energy initiative for Assam has been called off after the Central government officially withdrew its request for a $434.25 million loan from the Asian Development Bank (ADB), which was intended for the “Assam Solar Project.” The cancellation, effective May 23, 2025, occurred despite the ADB’s approval of the funding just seven months prior, on October 24, 2024.
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The ambitious project aimed to construct a 1000 MW solar photovoltaic facility, integrated with a battery energy storage system (BESS) pilot, at Khatkhati-Longkathar in Assam’s Karbi Anglong district. It also sought to enhance the state’s institutional capacity for promoting and executing public-private renewable energy transactions.
Additionally, a $1.0 million technical assistance (TA) grant from the Clean Energy Fund was attached to the loan, designed to enhance the Assam Power Distribution Company Limited (APDCL)’s expertise in renewable energy, cultivate a solar project pipeline for private investment, and foster renewable energy skills and livelihoods.
Envisaged outputs of the project included increased state government capacity in renewable electricity generation, management, and operation; enabled private sector investment in solar PV capacity; pilot-tested renewable energy-powered BESS; and an enhanced electricity distribution system in project areas.
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However, the loan and project agreements were never signed. The Ministry of Finance’s decision to withdraw the proposal was communicated to the ADB in a letter dated May 23, 2025.
The official letter from the Central government to the ADB, addressed to Mio Oka, Country Director, India Resident Mission, Asian Development Bank, stated: “I am directed to convey that in line with the request of Government of Assam, it has been decided to withdraw the loan proposal for the ‘Assam Solar Project (PPR ID 11688)’ and technical Assistance (PPR ID 12165) proposal under the Assam Solar Project (Implementation of 1000MW Solar Power Plants in the State under ‘Mukhya Mantri Sauro Shakti Prokolpo’). ADB is requested to take further appropriate action.”
Signed by Dinesh Kumar Shukla, Under Secretary to the Government of India, the letter confirms that the decision was made with the approval of the competent authority, following a request from the Assam government. The ADB has formally communicated the cancellation of the loan and TA to its Board of Directors, a procedure similar to when a loan approval’s validity lapses due to the government not g the agreement within 12 months of Board approval.
The reasons behind the Assam government’s request for withdrawal have not been publicly disclosed. Northeast Now reached out to APDCL PRO Bijoy Sankar Baruah for comment but has not yet received a response. The news story will be updated upon receipt of his response.
Strong Opposition from Indigenous Communities
There was strong opposition from the indigenous Karbi and Rengma Naga people in Karbi Anglong district due to the potential loss of their land. The project threatened to displace many tribal residents across 23 villages, strip them of their ancestral lands, and disrupt the livelihoods of over 20,000 villagers.
The proposed acquisition of 18,000 bighas (approximately 2,400 hectares) of land raised concerns about environmental degradation, including the destruction of hundreds of trees and the potential blockage of a critical elephant corridor. Local residents, who were staunch opponents of the solar power project, have welcomed this development.
Vikram Hanse, a leader of the All-Party Hills’ Leader Conference (APHLC), stated that the loan withdrawal signifies the initial move towards the complete cancellation of the project. He emphasized their demand for the Assam government to entirely scrap the project, thereby ensuring that tribal land, protected under the Sixth Schedule, remains with the indigenous communities.
Pranab Doley, convener of the Karbi Anglong Solar Power Project Affected People’s Rights Committee (KASPAPPC), asserted that the ADB’s withdrawal of funds demonstrates the solar project’s potential for adverse impact and violation of indigenous people’s rights.
“The withdrawal of funds by ADB proves that the solar project would have an adverse impact and it would violate indigenous people’s rights enshrined in the Indian constitution and international treaties. It also would have a major impact on the elephants and other wildlife corridors,” Doley said.
“We demand that the government now completely withdraw the project and uphold the rights of communities and the environment,” he added.
“Strong protests from the people of Karbi Anglong have forced the Assam government into a defensive position. This represents a crucial initial victory for the indigenous tribal population,” said Subrat Talukdar, a leader of the t Struggle Committee for Land Rights—a key organization opposing the project.
“Across Assam, people are facing challenges as the government attempts to acquire their land for various projects. The future of Assam as a nationality hinges on our ability to protect our land. We urge the government to refrain from undertaking any projects that jeopardize the lives and livelihoods of the people,” Talukdar added.
A Land Steeped in History and Culture
Karbi Anglong, Assam’s largest district, is home to a rich array of tribal communities, including the Karbi, Rengma Naga, Bodo, Adivasi, Kuki, and others. Governed under the Sixth Schedule of the Indian Constitution, the Karbi Anglong Autonomous Council (KAAC) ensures regional autonomy, safeguarding the cultural and land rights of these indigenous groups. For over a century, the Karbi and Rengma Naga people have cultivated the fertile lands of Khatkhati-Longkathar, growing bamboo, banana trees, rabi crops, lemon, and broom grass. These agricultural practices are not just a source of sustenance but a cornerstone of their cultural identity.
“This land is our mother,” said Semson Teron, a young law graduate from Bokajan in Karbi Anglong, who has emerged as a vocal leader in the protests. “For generations, we have lived here, farmed here, and raised our families. To take it away for a solar project is to rob us of our history and future.” His sentiments echoed the fears of many residents who face displacement, with no clear plan for rehabilitation or compensation.
Mohori Ingti, a 60-year-old farmer from Longkathar, one of the villages affected by the project, sees the land not just as a means of survival; it holds their community’s roots and identity. “This land belongs to our ancestors. Our fathers and grandfathers came down from the hills and founded this village in 1912. We cannot let anyone take it from us by force — they do not have our consent,” Ingti told Northeast Now.
According to Hillo Rengma, pastor of the local church at Kedaphen Rengma village, their settlement in the area dates back approximately 40 years. He said that the proposed projects would result in the loss of their homes and land. “We have no alternative place to relocate,” he stated. “We will not relinquish this land. The KAAC provided assurances of a lump-sum compensation, which we will not accept.”
The Resettlement and Indigenous Peoples Plan (RIPP) published by ADB in July 2024 stated that nearly 2,400 hectares (18,000 bighas) of land would be acquired for the solar project. This includes 2,201.5 hectares (16,511 bighas) of land under the Karbi Anglong Autonomous Council (KAAC) and 198.5 hectares (1,489 bighas) of customarily owned land by 1,277 tribal families. Under Sixth Schedule provisions, KAAC grants customary land rights to indigenous s. The resettlement plan further revealed that 38 homes belonging to titled customary owners and two religious structures would be completely demolished for the solar park.
The Flip Side of Clean Power
The decision to build the solar park was announced in March 2023 under the Mukhya Mantri Sauro Shakti Prokolpo, a flagship initiative to promote solar energy in Assam. The Rs 4,000 crore ($672.68 million) project, led by the Assam Power Distribution Company Limited (APDCL), is being developed under a public-private partnership model.
According to ADB’s assessment, 1,498 bighas—roughly 12% of the total project area—are currently under productive use. This includes 480 bighas of citronella (lemongrass), an aromatic plant valued in producing perfumes and natural insecticides, 270 bighas of rubber, and 50 bighas of bamboo plantations.
However, villagers like Mohori Ingti contested the official figures and claimed that they do not reflect the actual scale of use. “I have a bamboo plantation of about 200 bighas, and the entire area falls within the project site,” Ingti said. “We’ve ed our family from this land for generations. A single bamboo sells for Rs 40 to Rs 50, and we sell between 8,000 to 10,000 bamboos each year. This is how we’ve survived since the time of our fathers and grandfathers.”
Ingti claimed that neither APDCL nor KAAC sought any verbal or written consent from them. “In 2023, a meeting was held at Chandra Kathar’s (village chief of Longkathar) house, attended by officials from APDCL and ADB. During that meeting, my brother, I, and several others from the village argued with them and clearly said we would not give up our land. They took down our names and said they would call us to the Council later, but we have not been called till today.”
The proposed land acquisition included 2,201.5 hectares of KAAC land and 198.5 hectares of customarily owned land, a move that critics argued violates the constitutional protections afforded to tribal communities under the Sixth Schedule.
Assam MP Ajit Kr. Bhuyan had raised the issue in the Rajya Sabha, accusing the state government of bying these protections and prioritizing corporate interests over indigenous rights. “It is with extreme regret that the people of Karbi Anglong are going to lose their livelihood for the benefit of some big merchant,” Bhuyan had stated during a Zero Hour speech on March 11, 2025.
Environmental Concerns: Trees and Elephants at Risk
Beyond the human toll, the solar project posed significant environmental threats. The Khatkhati-Longkathar area is part of the ecologically sensitive Kaziranga-Karbi Anglong landscape, home to diverse flora and fauna, including an estimated 1,700 elephants. The Kalapahar-Doigrung elephant corridor, which connects Intaki National Park to Nagaland, is a critical age for these majestic animals. Environmentalists warn that the project’s construction could block this corridor, exacerbating human-wildlife conflicts in a region already grappling with such issues.
The solar project’s footprint, which involves clearing hundreds of trees, could further fragment elephant habitats, pushing them into human settlements and intensifying conflicts.
Birson Tisso, a 40-year-old farmer from Men Tisso village, cultivates lemongrass (citronella) near the project site. For the past seven years, this has been his family’s sole source of income, including the education of his two sons. However, farming alternatives are limited. “We can’t grow paddy in the area because of wild elephants,” Tisso explained, pointing to recurring wildlife intrusions that damage crops in search of fodder. Approximately 30 bighas of his 100-bigha plantation are set to be acquired for the solar park.
Tisso’s fears are echoed in ADB’s own documents. The project’s Initial Environmental Examination (IEE) prepared by APDCL notes frequent “stray elephant” sightings in the area. It also identifies an “unnotified” elephant corridor — the Nahorlangso Elephant Corridor — located just 3 kilometers from the project site. The IEE further revealed that more than 10,000 trees were planned to be cut down to accommodate the solar facility.
“Hundreds of trees—bamboo, banana, and others—will be destroyed,” said Anita Mech, a local leader of APHLC. “This is not just about losing crops; it’s about losing the ecosystem that sustains both people and wildlife,” she added.
KAAC Officials Tight-Lipped on Solar Project
The Karbi Anglong Autonomous Council (KAAC) is facing scrutiny as its officials continue to remain tight-lipped about the solar project, fueling concerns and unanswered questions regarding their role.
During a visit to the KAAC headquarters and the Divisional Forest Officer’s (DFO) office for Karbi Anglong East Division in Diphu, no official was willing to speak on the project, including matters related to forest, wildlife, and land. The Karbi Anglong DFO stated he was not authorized to speak and directed inquiries to the KAAC. However, the Secretary (Forest) of KAAC claimed to be unaware of the project and advised meeting with the revenue secretary, who was unavailable for comment. Similarly, the Diphu-based CEO of the APDCL also denied knowledge of the project.
