"Ministry of Environment, Forests and Climate Change has accorded in-principle approval for diversion of forest land in favour of NHPC Ltd for construction of Dibang Multipurpose Project (3,000 megawatts) in Arunchal Pradesh," NHPC said in a statement.
The project will come up on Dibang River in Lower Dibang valley district of Arunachal Pradesh and the company has already received techno-economic clearance for the project.
The 3,000 megawatts (MW) hydel project, being developed by NHPC, at was originally scheduled to get commissioned by 2017 but delays in necessary clearances have pushed it back by about two years.
The project was cleared by the Forest Advisory Committee (FAC) of the Ministry of Environment and Forests (MoEF), last year.
At present, NHPC has an installed generation capacity of 6507 MW and another 3290 MW is under construction, according to the company's website.