Cabinet approves two Hydro power projects in Arunachal Pradesh with investment of Rs 3,700 crore

Ashwini Vaishnaw

Union Minister Ashwini Vaishnaw announced on November 25 that the Cabinet has approved an investment proposal for the construction of the 186 MW Tato-I Hydro Electric Project in Shi Yomi District of Arunachal Pradesh with an outlay of Rs 1750 crore and a completion period of 50 months.

The project with an installed capacity of 186 MW (3 x 62 MW) would produce 802 million units (MU) of energy. Power generated from the two projects will help improve the power supply position in Arunachal Pradesh and will also help in balancing the national grid, Vaishnaw said.

The project will be implemented through a joint venture between North Eastern Electric Power Corporation Ltd (NEEPCO) and the Government of Arunachal Pradesh. The Centre will extend Rs 77.37 crore as budgetary support for the construction of roads, bridges, and associated transmission lines under enabling infrastructure besides Central Financial Assistance of Rs 120.43 crore towards the equity share of the state.

“The state would benefit from 12 percent free power and another 1 percent towards Local Area Development Fund (LADF), besides significant infrastructure improvement and socio-economic development of the region,” the govt release stated.

“There will be a significant improvement in infrastructure, including the development of around 10 kilometres of roads and bridges, for the project which shall be mostly available for local use. The district will also benefit from the construction of essential infrastructure such as hospitals, schools, vocational training institutes like ITIs, marketplaces, playgrounds, etc. to be financed from dedicated project funds of Rs.15 crore. Local populace shall also be benefitted from many sorts of compensations, employment, and CSR activities,” it added.

The CCEA, chaired by Prime Minister Narendra Modi, also approved an investment of Rs 1,939 crore for another Heo Hydro Electric Project (HEP) that will come up in Shi Yomi District of Arunachal Pradesh. The project with an installed capacity of 240 MW (3 x 80 MW) would produce 1000 MU of energy. This too will be implemented through a joint venture between the state government and NEEPCO.

The Government of India shall extend Rs 127.28 crore as budgetary support for the construction of roads, bridges, and associated transmission lines under enabling infrastructure, besides the Central Financial Assistance of Rs 130.43 crore towards the equity share of the state.

The project, which aligns with Aatmanirbhar Bharat Abhiyan goals, would provide various benefits to local suppliers/ enterprises/ MSMEs. During the construction phase, it will require approximately 200 personnel from NEEPCO and around 400 workers from the contractor.

Additionally, the project will create significant indirect employment opportunities for the local community through various small contracts and services during its execution. It would also employ people for operation and maintenance. Furthermore, its development would create employment in sectors such as transportation, tourism, and small-scale businesses.