Sat, Jul 18, 2026
Amid rising security concerns at the border area in India’s landlocked northeastern states, the Centre is going all the way to position this region as the next hub for investment, especially in the green energy sector.
The Ministry of New and Renewable Energy (MNRE) has pegged the renewable energy potential in the seven northeastern states at 128 GW, dominated by solar and hydropower. But despite the vast potential, the installed capacity for renewable energy in this region is just around 2.3 GW, even as several projects are already underway.
The gap showcases the huge untapped potential and opportunities for investors.
With waterbodies dotted all across the northeastern states, the region will play a key role in promoting floating solar, pumped storage, and modernised hydro projects.
Green hydrogen, biomass, agrivoltaics, and waste-to-energy segments have also remained primarily untapped.
Last year, Adani Power Ltd (APL) announced massive investments in the northeast region, with a chunk of it directed to Assam. The company has firmed up plans to set up a 3,200 MW greenfield ultra supercritical power plant in Assam, at a cost of about ₹48,000 crore.
In a statement, the Gautam Adani-promoted company said that Adani Green Energy plans to further invest about ₹15,000 crore to set up two Pumped Storage Plants (PSP) in the state, with a combined capacity of 2,700 MW.
“These landmark initiatives underscore the Adani Group’s strategic focus on the advancement of India’s northeastern region,” the statement said.
Several companies from Japan and South Korea have also shown an interest in expanding investments in the region dotted with rivers and lakes, key for hydropower. The Indian Renewable Energy Development Agency Ltd (IREDA) has sanctioned over ₹3,500 crore to support green energy projects. The loans for RE projects in the northeast will bear a 50 basis points rebate. Further a 50 basis points rebate will be offered for women-led projects.
Similarly, Reliance Industries plans to set up 350 integrated Compressed Biogas (CBG) plants to convert organic waste into fuel.
The northeastern states that share borders with countries such as Myanmar, Bangladesh, Bhutan, and China would be crucial for cross-border electricity trade as well.
According to an official release, investments of over ₹4 lakh crore have been pledged in 2025 by major conglomerates, which include Reliance and Vedanta, besides Adani. The investments will help develop the agriculture, logistics, and technology sectors.
Given the scale of the untapped opportunity, Guwahati is set to host the “Northeast India Clean Energy Conclave 2026” this week in February 2026. Incidentally, last year, a similar conclave showcasing the northeast as a key investment hub was held in New Delhi.
However, the aim is not only to showcase the landlocked states as a premier investment destination for renewable energy; sources said that the event is timely, with an underlying message that the region is central to India and its growth journey including the plans on energy transition. Besides the Northeast is also critical for the Narendra Modi government's Act East policy.
Notably, the in the recently held Bangladesh elections, the pro-Islamist Jamaat-e-Islami and its allies won the majority of seats in the border region, giving rise to security concerns for India’s authorities. The party won as many as 68 seats, the highest ever, and most of these have been around the border areas, including the crucial 22-km-wide and 60-km-long Chicken’s Neck or the Siliguri Corridor, respectively.
"Bangladesh can provide huge potential for economic prosperity for the seven sister states, Nepal, and Bhutan... Our open seas are not just borders: they are gateways to the global economy," Bangladesh’s former interim chief Muhammad Yunus said. Delivering his parting speech, Yunus said that Dhaka could provide huge economic potential for the northeast region through its "open sea".
The northeast region undeniably forms a crucial link for India, while serving as the gateway to Southeast Asia.
The Observer Research Foundation, in a report, noted that “comprehensive development can transform the Northeast from a marginalised area into a dynamic and integral part of India’s economic matrix.”