Guwahati, Jan 15: Arunachal Pradesh Cabinet, in its first meeting of 2025 chaired by Chief Minister Pema Khandu, prioritized the revival and expansion of hydropower projects, reaffirming the state’s commitment to leveraging its hydroelectric potential of 58,000 MW to drive regional growth and sustainability.
Rejuvenation of Large Hydropower Projects
In a landmark decision, the Cabinet approved State Goods and Services Tax (SGST) reimbursement concessions for the Tato II (700 MW) and Kamala (1,720 MW) Hydroelectric Projects. These projects, revitalized through Memorandums of Agreement (MoAs) with Central Public Sector Undertakings (CPSUs), represent a combined investment of approximately ₹35,000 crore.
The Tato II project, located on the Siyom River in the Shi Yomi district, and the Kamala project, situated on the Kamala River in the Upper Subansiri district, are being developed as joint ventures, with the state government holding a 26% equity share. Upon completion, the projects will generate an annual revenue of ₹470 crore in free power and ₹79 crore in Local Area Development Funds, offering significant economic and developmental benefits to the region.
Socioeconomic Impact
These hydropower projects promise transformative changes for local communities by creating employment opportunities, upskilling workers, and spurring regional economic activity. Ancillary developments, including roads, healthcare, and educational facilities, are expected to uplift local infrastructure and foster long-term socioeconomic growth.
Additionally, these projects are part of a broader initiative to revive 13 large hydropower projects that had been stalled, with MoAs signed in 2023 between the state government and four CPSUs. This initiative underscores Arunachal Pradesh’s strategic focus on harnessing its immense hydroelectric capacity to emerge as a leading energy hub in India.
Policy for Terminated Projects
To address challenges faced by large hydropower projects, the Cabinet approved the “Arunachal Pradesh Policy for Restoration of Terminated Large Hydropower Projects under Special Circumstances, 2025.” This policy aims to restore projects that had achieved substantial progress, ensuring timely completion, enhanced investor confidence, and increased employment opportunities.
Strengthening Hydropower Governance
In line with its commitment to efficient hydropower development, the Cabinet also approved the upgradation of 20 Junior Engineer (Civil) posts to Assistant Sub-Engineer and Assistant Engineer (Civil) posts in the Department of Hydropower Development. This move aims to address staffing gaps, streamline operations, and boost career advancement for existing personnel.
By revitalizing stalled hydropower projects, enhancing governance, and prioritizing sustainable infrastructure, the Arunachal Pradesh government has set a robust agenda for harnessing its hydroelectric potential to drive the state’s development and economic transformation.
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