The Asian Development Bank (ADB) has officially withdrawn a \$434.25 million loan earmarked for a 1,000 MW solar power project in Assam’s Karbi Anglong district, following a request from India’s Ministry of Finance. The decision was prompted by sustained resistance from tribal communities in the region, who raised concerns over land diversion and potential displacement.

The solar park, proposed under the Assam government’s flagship ‘Mukhya Mantri Soura Shakti Prokolpo’ scheme, aimed to utilize 2,396.5 hectares of land near Khatkhati in the Karbi Anglong Autonomous Council. The area lies along the inter-state border with Nagaland and is home to indigenous communities including Karbi, Naga, Kachari, and Adivasi groups. The project would have affected 24 villages, triggering widespread opposition.

In October 2024, the ADB had approved a loan of over \$434 million for the solar initiative, which was projected to cost around \$672.68 million (Rs 4,000 crore). The financing also included an additional \$1 million in technical assistance from ADB’s Clean Energy Fund, intended to support the state’s power utility. The proposed financing structure involved a mix of ADB loans, private sector investment contributing nearly 19.29% (around \$129.77 million), and 16.15% from the Government of India, structured under a public-private partnership model.

However, on May 23, 2025, the Ministry of Finance formally communicated its decision to ADB’s India Resident Mission, requesting the withdrawal of both the loan and the technical assistance component. ADB subsequently confirmed the move in a public information statement, clarifying that no agreements had been signed prior to the ministry’s request.

The cancellation marks a major victory for indigenous communities and civil society organizations that had been opposing the project for months. Grassroots groups highlighted discrepancies in the land acquisition process, including alleged irregularities in environmental and social assessments and the use of forged no-objection certificates during public consultations.

Several regional political organizations and rights-based groups had rallied in support of the communities, calling the project a direct threat to the constitutional protections granted under the Sixth Schedule. Critics argued that the solar park would lead to large-scale displacement and irreversibly alter the socio-ecological fabric of the area.

The protesting communities are now demanding that the state government make an official declaration to permanently abandon any future project plans in the Karbi Anglong region. They also called for accountability for the alleged manipulation of consent and consultation processes.

While the Assam government has yet to issue a formal response to the loan withdrawal, local leaders and advocacy groups view the development as a significant step toward preserving tribal land rights and environmental integrity. Observers suggest that the decision could set a precedent for future infrastructure planning in ecologically and culturally sensitive zones across the country.