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Cabinet Clears Rs 81.46 Billion Tato-II Hydro Project

2025-08-14

The Cabinet on Tuesday 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. The 700 MW project, with an estimated completion period of 72 months, is expected to generate 2,738.06 million units of energy annually.

The power generated will strengthen electricity supply in Arunachal Pradesh and help balance the national grid. The project will be executed through a joint venture between the North Eastern Electric Power Corporation Ltd (NEEPCO) and the Government of Arunachal Pradesh.

The central government will provide Rs 4.59 billion as budgetary support for enabling infrastructure such as roads, bridges, and transmission lines, along with Rs 4.36 billion in Central Financial Assistance towards the state’s equity share. Arunachal Pradesh will receive 12 per cent free power and an additional 1 per cent for the Local Area Development Fund (LADF). The project will also drive infrastructure upgrades and socio-economic growth in the region.

In line with the Aatmanirbhar Bharat Abhiyan, the initiative will create opportunities for local suppliers, enterprises, and MSMEs, along with direct and indirect employment. Around 32.88 km of roads and bridges will be developed, largely available for local use. Dedicated project funds of Rs 200 million will finance essential amenities including hospitals, schools, markets, and playgrounds.