India’s Ministry of Finance wrote to the Asian Development Bank (ADB) on May 23, 2025, asking to cancel a $434.25 million loan for a 1000 MW solar project in Assam. Due to this request, ADB withdraws $434 million loan for Assam Solar Project. Concerns over relocating 24 villages inside the Karbi Anglong Autonomous Council region led to significant resistance to the project, a component of the “Mukhya Mantri Soura Shakti Prokolpo” scheme. Following pressure from the Karbi, Naga, Kachari, and Adivasi, the Assam government formally communicated the request.

ADB said the technical assistance (TA) agreement and the loan were not signed. 2,396.5 hectares (or 18,000 bighas) of land were to be diverted to the project area, which is close to Khatkhati and borders Nagaland. The total projected cost was estimated at $672.68 million. Additionally, ADB was supposed to provide $1 million in Clean Energy Fund TA. A public-private partnership would cover the remaining expenses, with the Indian government contributing 16.15% and private investors contributing 19.29% ($129.77 million).

Community Opposition and Political Support

The Karbi Anglong Solar Power Project Affected People’s Rights Committee (KASPAPPC), which represents local communities, has been demonstrating against the land diversion. They have drawn attention to shortcomings in the ADB consultants’ evaluation and consultation process. The National People’s Party, CPI (Liberation HLC), and the All-Party Hills’ Leader Conference (APHLC) have provided political assistance.

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Allegations of Fraud and Demands for Full Cancellation

Leaders like Vikram Hanse of APHLC brought attention to cases of manipulated public consultations and falsified no-objection certificates. Pranab Doley, the convenor of the KASPAPPC, called the withdrawal a triumph for the people and urged the Assam government to formally halt the project and preserve the Sixth Schedule’s provisions for tribal territories.

ADB withdraws $434 million loan for Assam Solar Project, which has since become a rallying point for indigenous rights in the region.

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