The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved an investment of ?8,146.21 crore for the construction of the 700 MW (4x175 MW) Tato-II Hydro Electric Project (HEP) in Shi Yomi district, Arunachal Pradesh. The project is expected to be completed in 72 months and will generate approximately 2,738.06 million units of electricity annually.

The project will be executed by a joint venture between North Eastern Electric Power Corporation Ltd (NEEPCO) and the Government of Arunachal Pradesh. The Centre will provide ?458.79 crore in budgetary support for enabling infrastructure such as roads, bridges, and transmission lines, along with ?436.13 crore in Central Financial Assistance toward the state’s equity share.

Arunachal Pradesh will receive 12% free power and an additional 1% for the Local Area Development Fund (LADF). The project is expected to bring substantial socio-economic benefits, including infrastructure upgrades, improved power supply, and enhanced regional connectivity.

Key infrastructure developments will include around 32.88 km of roads and bridges, largely accessible to the local community, as well as essential public amenities such as hospitals, schools, markets, and playgrounds funded through ?20 crore allocated for community facilities. The project will also create direct and indirect employment opportunities, provide compensation to affected communities, and support CSR initiatives.

Aligned with the Aatmanirbhar Bharat Abhiyan, the Tato-II HEP will benefit local suppliers, enterprises, and MSMEs, while contributing to national grid stability and bolstering India’s renewable energy capacity.