The federal governments of India and Myanmar have dumped two hydro projects totaling power capacity of 2,080MW in Myanmar citing environmental and social issues.
The two projects include 1,200MW Tamanthi and the 880MW Shwezaye projects planned on Myanmar’s Chindwin River.
Myanmar government has also claimed that the tariffs proposed from the projects were unreasonably high and it was deciding to terminate them.
Myanmar Environmental Conservation and Forestry Minister U Win Tun said the environment is a higher priority for the country, reported Live Mint.
"Today, we are focusing on people. Even if there are EIAs in place, if our people say no, we wouldn’t go forward. Our policies are people-centric," added Tun.
A source familiar with the developments was quoted by Lime Mint as saying, "India and Myanmar have reviewed the detailed reports of the Tamanthi and Shwezaye hydro-electric projects prepared by NHPC.
"Taking into consideration the questions raised with regard to the economic viability of these projects and potential social and environmental impact, both sides have agreed to suspend any further action on them for the present."