Nagaland Courts NETC Investment to Fix Power Crisis

Photo Courtesy: India Today Group

Kohima: Nagaland is hunting for new power deals. The state government met with North East Transmission Company Limited (NETC) on August 13 to discuss infrastructure investments and joint venture models. The situation is dire. State officials admitted that Nagaland generates only 20 MW of power against a peak demand of 193 MW. This leaves the state meeting a mere 10 percent of its requirements locally.

Principal Secretary and Development Commissioner Y Kikheto Sema chaired the session at the Nagaland Civil Secretariat. While the state possesses an installed capacity of 29.4 MW, the operational output remains stuck at 20 MW. To keep the lights on, the state relies on a 202 MW allocation from Central Sector projects, including NEEPCO, NHPC, NTPC, and OTPC. Sema pushed for urgent private and institutional investment to drive industrial growth, healthcare, and job creation.

NETC Managing Director Jai Shankar led his team to the meeting, offering a way out of the reliance on external power. Shankar proposed a Special Purpose Vehicle (SPV) with equitable equity participation to build substations, transmission lines, and solar-hybrid storage systems. He argued that upgrading the grid could turn the deficit into a profit center. "Nagaland needs to adopt a balanced energy mix, comprising hydro, solar, wind, gas, and energy storage, to prepare for evolving grid demands," Shankar stated.

Principal Secretary for Power K.D. Vizo backed the push for local solar generation. Meanwhile, Finance OSD Ketoulhou Metha noted that the state is facing fiscal constraints but still treats power as a top priority. NETC Head of HR and Business Development Riteish Kumar presented a specific framework for the collaboration. The state government is now waiting for concrete project proposals from NETC to evaluate potential resource mobilization.

Updated at 14th August 2026 at 2:00pm

Beyond domestic needs, the state is eyeing a role as a power exporter. Shankar noted that beefing up transmission and evacuation infrastructure could allow Nagaland to trade surplus renewable energy to other states, a move that would inject fresh revenue into the treasury and slash the state's heavy power procurement bills.

Sema also signaled that any development in the power sector must be balanced with environmental protection, insisting that future energy projects stay aligned with the state's commitment to sustainable growth.

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