Centre clears ?8,146.21 Crore for 700 MW Tato-II Hydropower Project in Arunachal Pradesh

13 Aug 2025

The Union government on Tuesday approved an investment of ?8,146.21 crore for the development of the 700 MW Tato-II hydroelectric project in the Shi Yomi district of Arunachal Pradesh. The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Tuesday approved an investment of ?8,146.21 crore for the construction of the Tato-II Hydro Electric Project (HEP) in the Shi Yomi district of Arunachal Pradesh, the statement said.

The project, with an installed capacity of 700 MW (comprising 4 units of 175 MW each), is expected to generate approximately 2,738.06 million units of electricity. This power output will enhance the electricity supply in the state of Arunachal Pradesh and contribute to stabilising the national grid.

The project will be executed through a joint venture company formed by North Eastern Electric Power Corporation Ltd (NEEPCO) and the Government of Arunachal Pradesh. The Government of India will provide budgetary support amounting to ?458.79 crore for the construction of roads, bridges, and related transmission lines under enabling infrastructure. Additionally, Central Financial Assistance of ?436.13 crore will be given as an equity share to the state.

The state would gain from receiving 12% free power, along with an additional 1% allocated to the Local Area Development Fund (LADF), in addition to substantial improvements in infrastructure and socio-economic development within the region. The project will bring substantial improvements to infrastructure, including the construction of approximately 32.88 kilometres of roads and bridges, primarily intended for local use.