The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Tuesday approved an investment of Rs 8,146.21 crore for the construction of the 700 MW Tato-II Hydro Electric Project (HEP) in Shi Yomi District of Arunachal Pradesh. The project is expected to be completed within 72 months.

The Tato-II project, with an installed capacity of 700 MW (4 units of 175 MW each), is estimated to generate 2,738.06 million units (MU) of energy annually. The power generated will strengthen the energy supply in Arunachal Pradesh and contribute to balancing the national power grid.

The project will be executed through a joint venture between North Eastern Electric Power Corporation Ltd. (NEEPCO) and the Government of Arunachal Pradesh. The Government of India will provide Rs 458.79 crore as budgetary support for construction of roads, bridges, and transmission lines under enabling infrastructure, along with Rs 436.13 crore as central financial assistance towards the state’s equity share.

Under the agreement, Arunachal Pradesh will receive 12% free power and an additional 1% allocation towards the Local Area Development Fund (LADF). The project also aims to boost socio-economic development in the region through infrastructure upgrades and employment generation.

Significant infrastructure development is planned, including the construction of approximately 32.88 kilometres of roads and bridges, which will be largely accessible for local use. The project will also finance essential community facilities such as hospitals, schools, marketplaces, and playgrounds with dedicated funds of Rs 20 crore.

The initiative aligns with the goals of the Aatmanirbhar Bharat Abhiyan and is expected to create direct and indirect job opportunities, benefiting local suppliers, enterprises, and MSMEs. Local communities will also receive various compensations and support through corporate social responsibility activities linked to the project.