ADB Withdraws Loan for Assam Solar Power Project
The Asian Development Bank (ADB) withdrew its $434.25 million loan for a proposed 1000 MW Solar Power Park in Karbi Anglong, Assam. This decision followed objections from local communities, including the Karbi, Naga, Kachari, and Adivasi groups. They opposed the project due to concerns about land displacement affecting 24 villages. The withdrawal marks the tension between development initiatives and local rights.
Background
The solar power project was part of Assam’s ‘Mukhya Mantri Soura Shakti Prokolpo’ scheme. It aimed to divert 2,396.5 hectares of land in Karbi Anglong for renewable energy generation. The project was initially approved by ADB in October 2024, with a total estimated cost of $672.68 million.
Community Opposition
Local communities expressed strong resistance against the project. They cited potential displacement and loss of ancestral lands. The Karbi Anglong Solar Power Project Affected People’s Rights Committee (KASPAPPC) led the opposition. They brought into light issues with the assessment process conducted by ADB consultants and alleged irregularities in securing land approvals.
Government Response
The Government of Assam requested the loan withdrawal from ADB. The Union finance ministry acted on this request, leading to the loan’s cancellation. Community leaders welcomed this decision as a victory for local rights. They urged the Assam government to publicly declare the complete withdrawal of the project.
Political Dynamics
Various regional opposition parties supported the local communities. The All-Party Hills’ Leader Conference (APHLC) and others joined the fight against the project. Political leaders revealed fraudulent no-objection certificates that were used to facilitate land diversion. This raised concerns about governance and accountability.
Role of the ADB
The ADB is a multilateral development bank established to promote economic growth in Asia and the Pacific. It focuses on poverty eradication, infrastructure development, and climate resilience. ADB’s involvement in projects often aims to align with sustainable development goals. However, its projects can sometimes conflict with local interests.
Future Implications
The withdrawal of the ADB loan may have broader implications for renewable energy projects in India. It raises questions about balancing development with community rights. The incident puts stress on the need for inclusive consultation processes in project planning. It also marks the importance of respecting constitutional protections for indigenous lands.
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