NHPC announced that the Cabinet Committee on Economic Affairs had approved a Rs 16 billion investment for "pre-investment activities" for its 2,880 MW Dibang multipurpose project in Arunachal Pradesh.
The cost of India's largest hydro project, which includes storage, is estimated to be Rs. 318.76 billion.
The project will take nine years to complete after receiving government approval.
The Dibang multipurpose project is envisioned as a storage-based hydroelectric project with flood mitigation as its primary goal.
The project, located in the Lower Dibang Valley district, will generate 11,223 million units of energy per year. The dam will be the highest in India, standing at 278 metres in height.
When the project is completed, the state will receive 12% free power from the plant, which amounts to approximately 1348 million units per year.
The total benefit to Arunachal Pradesh from free power and contributions to the local area development fund will be Rs 267.85 crores over the project's 40-year life.
The construction of the Dibang project is expected to protect a large downstream area from flooding, according to the company.
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