Cabinet Clears ₹8,146 Crore Tato-II Hydro Project to Boost Power & Growth in Arunachal

In a major step toward strengthening India’s clean energy infrastructure, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Shri Narendra Modi, has approved an investment of ₹8,146.21 crore for the construction of the Tato-II Hydro Electric Project (HEP) in the picturesque Shi Yomi district of Arunachal Pradesh. The project, with an installed capacity of 700 MW (4 x 175 MW), is expected to be completed within 72 months and will produce an estimated 2,738.06 million units (MU) of electricity annually.

Strengthening Power Supply and Grid Stability

The Tato-II HEP is set to play a dual role—meeting the growing power demands of Arunachal Pradesh while contributing to the balancing of India’s national grid. The substantial hydroelectric capacity will help ensure a reliable, renewable, and stable power supply, particularly vital for the energy-deficit regions of the North East.

Joint Venture for Strategic Implementation

The project will be implemented through a joint venture between the North Eastern Electric Power Corporation Ltd. (NEEPCO) and the Government of Arunachal Pradesh. The central government will extend ₹458.79 crore in budgetary support for enabling infrastructure such as roads, bridges, and associated transmission lines, alongside ₹436.13 crore in Central Financial Assistance toward the equity share of the state government.

Direct Benefits to the State and Local Communities

Arunachal Pradesh will receive 12% free power from the project, ensuring steady state revenue, and an additional 1% of power proceeds will be earmarked for the Local Area Development Fund (LADF) to finance community-focused projects. The initiative will also provide significant boosts to local employment, business opportunities for MSMEs, and the engagement of regional suppliers.

Infrastructure and Socio-Economic Transformation

Beyond power generation, the project will be a catalyst for infrastructure growth in Shi Yomi district:

• 32.88 km of new roads and bridges, accessible for public use.

• Development of hospitals, schools, marketplaces, and playgrounds funded by a dedicated ₹20 crore allocation.

• Creation of employment and skill-development opportunities through CSR activities and project-linked training programs.

• Improved access to healthcare, education, and trade facilities, directly uplifting the standard of living in the region.

Advancing Aatmanirbhar Bharat Goals

Aligned with the Aatmanirbhar Bharat Abhiyan, the Tato-II HEP underscores the government’s focus on self-reliance in energy production while fostering economic growth in frontier states. The project will tap into the vast hydro potential of Arunachal Pradesh, helping reduce dependence on fossil fuels and supporting India’s climate commitments.

Looking Ahead

With its scale, strategic location, and multi-dimensional benefits, the Tato-II Hydro Electric Project is set to become a landmark in India’s renewable energy journey. It will not only meet the state’s energy needs but also pave the way for integrated regional development, making Shi Yomi a model district for sustainable infrastructure-led growth.