The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Tuesday approved an investment proposal worth ₹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 in 72 months.
With an installed capacity of 700 MW (4×175 MW), the Tato-II HEP will generate an estimated 2,738.06 million units of electricity annually. The power produced will not only strengthen the energy supply in Arunachal Pradesh but also 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 Centre will provide ₹458.79 crore as budgetary support for roads, bridges, and associated transmission lines, along with ₹436.13 crore in Central Financial Assistance for the state’s equity share.
Arunachal Pradesh will receive 12% free power from the project, along with an additional 1% earmarked for the Local Area Development Fund (LADF). Officials say the project will lead to significant socio-economic development in the region, including improved infrastructure, employment opportunities, and benefits to local suppliers and MSMEs in line with the Aatmanirbhar Bharat Abhiyan.
The development will also include the construction of approximately 32.88 km of roads and bridges, which will largely remain available for local use. Dedicated project funds of ₹20 crore will finance essential infrastructure such as hospitals, schools, markets, and playgrounds.