ADB scraps $434 mn loan for Karbi Anglong solar project over land, displacement row

Guwahati, June 4: The Asian Development Bank (ADB) has cancelled a proposed US $434 million loan to the Government of Assam for the Karbi Anglong solar power project, following sustained protests and concerns over displacement, land rights, and environmental impact.

The announcement was made on Wednesday at a press conference held at the Guwahati Press Club by representatives of the Joint Land Struggles Committee, Assam, and the Karbi Anglong Solar Power Project Affected People’s Rights Committee—the two groups at the forefront of the resistence.

According to the protest leaders, the ADB withdrew its support after receiving photographic evidence and drone footage during a meeting in Milan, Italy, that contradicted the state government’s claims about the project site.

“The government told ADB that the area was barren and sparsely populated, with only 1,000–1,400 people facing eviction. In reality, nearly 20,000 people—indigenous Karbis, Rengma Nagas, Nepalis, Assamese, and Adivasis—were at risk of displacement,” said Santanu Borthakur, advocate at the Gauhati High Court.

Activist Pranab Doley added that the proposed project area is an elephant corridor, a fact flagged to the ADB as a significant ecological concern.

While the state government had promised development and employment through the solar initiative, protestors remain sceptical.

“There are already departments under the Karbi Anglong Autonomous Council (KAAC) responsible for local employment. But in previous appointments, only 62 out of 1,345 posts were given to tribal individuals. The claim of job creation is a smokescreen—they're trying to grab our land through the back door,” said Bikram Hanse of the People’s Rights Committee.

Doley also warned of the long-term financial consequences had the loan gone through.

“The project would not only have devastated the environment and displaced thousands, but it would also have burdened future generations with debt,” he said.

The groups accused KAAC chief executive member (CEM) Tuliram Ronghang of violating the Sixth Schedule of the Constitution by allocating tribal land to an external entity, calling instead for sustainable development that respects indigenous rights.

“We are not against development—we are against destruction,” Doley said, urging the government to rethink its approach to growth and investment in tribal regions.

The government is yet to respond to the development.