Itanagar, May 13: The Arunachal Pradesh Cabinet, in a meeting held at Kibithoo on Tuesday, approved key initiatives to boost hydropower development in the state.

The Cabinet cleared the formation of a joint venture between the state government and NEEPCO—named NEEPCO Arunachal Hydro Power Corporation Ltd—for the implementation of five hydroelectric projects in Shi-Yomi district.

In a major policy reform, the Cabinet amended the Local Area Development Fund (LADF) guidelines to mandate an additional 1% free power contribution from power producers, raising the total to 2% for the benefit of project-affected communities.

The Cabinet also approved the revival of the 144 MW Gongri Hydroelectric Project under the newly introduced “Arunachal Pradesh Restoration of Terminated Large Hydropower Policy, 2025.”