Guwahati, Aug 12: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved an investment of ₹8,146.21 crore for the 700 MW Tato-II Hydro Electric Project in Shi Yomi district, Arunachal Pradesh.
The project, to be executed by a joint venture of NEEPCO and the Arunachal Pradesh government, is expected to be completed in 72 months and generate 2,738.06 million units of electricity annually—boosting the state’s power supply and strengthening the national grid.
The Centre will provide ₹458.79 crore for enabling infrastructure, including roads, bridges, and transmission lines, and ₹436.13 crore towards the state’s equity. Arunachal Pradesh will receive 12% free power and 1% for a Local Area Development Fund.

Beyond energy benefits, the project will create direct and indirect jobs, enhance local infrastructure with 32.88 km of new roads and bridges, and fund hospitals, schools, and marketplaces. Dedicated project funds of ₹20 crore will also support community facilities, while CSR and compensation measures will aid the local population.
Officials said the project aligns with the Aatmanirbhar Bharat Abhiyan and will provide significant opportunities for local suppliers, MSMEs, and enterprises.
Arunachal has 50,064 mw potential, out of which only 1,115 mw has been harnessed and 4,880 mw are under development, leaving 88 percent unexploited as on October 2024.
Arunachal Pradesh Deputy Chief Minister Chowna Mein has already assured the Centre that the completion of 13 hydel projects in the State will contribute about Rs. 10,000 crore per annum to the revenues of the State.
He expressed that with joint efforts of State Govt. and CPSEs, 13 HEPs will be completed within stipulated timelines.
Hydel power projects in Arunachal Pradesh have been facing lot of problems right from getting clearances to facing local protests.
He has assured full support of Power Department to central power sector undertakings for completion of different Hydro project in the State.
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