By Moa Jamir
Nagaland’s power sector reflects a persistent and pressing paradox—rising demand, limited local generation, and a system burdened by inefficiencies. The Department of Power Nagaland (DoPN)’s Annual Administrative Report 2025–26, tabled in the State Assembly, outlines these challenges with clarity. However, it also revealed how far the State still has to go to address its structural power deficits.
At the core lies a stark imbalance between demand and supply. With a peak demand of 193 MW, projected to rise to 304 MW by 2035, Nagaland currently meets only a fraction of its needs through internal generation. The State’s installed capacity stands at just 29.4 MW, with 90–95% of its electricity imported depending on the season. This reliance is not merely technical but a structural vulnerability that places sustained pressure on the State exchequer.
The financial data underscores this strain. Power purchase costs have consistently outpaced revenue realisation. In 2024–25, Nagaland spent over Rs 550 crore on power procurement while earning just about Rs 300 crore in revenue. Even in 2025–26 (up to Q3), expenditure stood at Rs 396.7 crore against receipts of Rs 203.88 crore. This widening gap reflects not only high dependence on external supply but also systemic inefficiencies within distribution and billing.
One of the most critical inefficiencies is Aggregate Technical and Commercial (AT&C) loss. While the current report is silent on this issue, past and independent data present a concerning picture.
Nagaland recorded the highest AT&C loss in India at 60.39% in 2020–21, nearly three times the national average, as per information provided in the Rajya Sabha in March 2023.
Although there has been some improvement, losses remain alarmingly high at 43.93% in 2024–25, as reported at a District Electricity Committee (DEC) meeting on RDSS held on March 3 in Kohima. In simple terms, nearly half of the power procured does not translate into billed revenue.
The Revamped Distribution Sector Scheme (RDSS), a flagship Government of India programme, seeks to address this gap with an ambitious target of reducing AT&C losses to 12–15%. Smart prepaid metering is central to this effort. The DoPN’s annual report indicated moderate progress, with over 15,600 meters installed out of 18,000 sanctioned for key urban centres in Dimapur, Chümoukedima and Kohima.
However, other reports suggest that progress has been uneven and far from encouraging. For instance, as per the March 3 DEC meeting, against a target of 3, 23,878 smart meters across the State, only 37,081 or about 11.4% had been installed. Public resistance, driven largely by concerns over billing transparency and affordability, remains a key hurdle.
On the supply side, efforts to expand local generation remain modest relative to the State’s needs. Nagaland has only one major hydropower project at Likimro (24 MW), alongside a few small hydro units. Two additional projects totalling 66 MW are in the pipeline, but these are unlikely to significantly reduce the overall deficit.
Renewable energy, particularly solar, is being positioned as a key pillar of future strategy. The Nagaland Solar Mission and rooftop solar scheme aim to promote decentralised generation, offering subsidies ranging from Rs 53,000 to Rs 1.35 lakh. However, progress so far has been underwhelming.
As per the report, against a target of 10,938 households and 32.8 MW capacity by 2027, only 130 households and 440 kW had been achieved as of December 2025 Large-scale solar projects such as the proposed 40 MW plant in Peren and ongoing installations in Niuland and Zhadima offer promises, but progress appears, uneven at best.
Ultimately, Nagaland’s power challenge is not just about generating more electricity, but about managing what is already available more efficiently. Reducing losses, improving billing systems, and building public trust in reforms are as critical as expanding generation capacity.
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