Cabinet Approves Investment for 700 MW Tato-II Hydro Electric Project in Arunachal Pradesh

The Cabinet Committee on Economic Affairs, led by Prime Minister Shri Narendra Modi, has approved an investment proposal of Rs 8,146.21 crore for building the Tato-II Hydro Electric Project in Shi Yomi District of Arunachal Pradesh. This project will have a capacity of 700 MW, consisting of four units of 175 MW each. It is expected to be completed in 72 months and will generate 2,738.06 million units of energy annually. The electricity produced will boost the supply in Arunachal Pradesh and help balance the national grid.

The Tato-II Hydro Electric Project will be carried out as a joint venture between the North Eastern Electric Power Corporation Limited (NEEPCO) and the Government of Arunachal Pradesh. The Government of India will provide Rs 458.79 crore to help build roads, bridges, and related transmission lines under enabling infrastructure. Additionally, Rs 436.13 crore will be given as Central Financial Assistance for the state's equity share.

The state will receive 12 percent of the generated power for free, and an extra 1 percent will be allocated to the Local Area Development Fund. Besides energy benefits, the project is expected to significantly improve infrastructure and socio-economic conditions in the area. About 32.88 kilometers of roads and bridges will be built for the project, primarily for local use. Dedicated project funds of Rs 20 crore will finance essential infrastructure like hospitals, schools, marketplaces, and playgrounds. The local community will also benefit from compensation packages, job opportunities, and Corporate Social Responsibility activities.

In line with the goals of the Aatmanirbhar Bharat Abhiyan, the project will create both direct and indirect jobs and offer opportunities for local suppliers, businesses, and MSMEs. The implementation of the Tato-II Hydro Electric Project is expected to stimulate economic growth, improve living standards in Shi Yomi District, and enhance Arunachal Pradesh’s role in the national power sector.