Cabinet Clears Rs 81.46 Billion Tato-II Hydro Project

13 Aug 2025 CW Team

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved an investment of Rs 81.46 billion for the construction of the Tato-II Hydro Electric Project (HEP) in Shi Yomi district, Arunachal Pradesh. Scheduled for completion in 72 months, the 700 MW project (4 x 175 MW) will generate 2,738.06 million units of energy annually, strengthening both the state’s power supply and the national grid.

Implementation and Funding

The project will be executed through a joint venture between North Eastern Electric Power Corporation Ltd (NEEPCO) and the Government of Arunachal Pradesh. The Centre will provide Rs 4.59 billion in budgetary support for roads, bridges, and transmission lines, along with Rs 4.36 billion in Central Financial Assistance for the state’s equity contribution.

Economic and Social Benefits

Arunachal Pradesh will receive 12 per cent free power, plus 1 per cent for the Local Area Development Fund (LADF). The initiative is expected to significantly improve infrastructure, create direct and indirect jobs, and support local enterprises and MSMEs in line with the Aatmanirbhar Bharat vision.

Infrastructure Development

The project includes 32.88 kilometres of new roads and bridges, accessible for local use. Additional infrastructure, such as hospitals, schools, marketplaces, and playgrounds, will be financed from a dedicated Rs 200 million project fund. Local communities will also benefit from compensation schemes, employment opportunities, and CSR programmes.

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