Date: 2025-08-12Category: Not ApplicableState: Union GovernmentCountry: India
Cabinet approves Investment Proposal for construction of 700 MW Tato-II Hydro Electric Project in Shi Yomi District of Arunachal Pradesh with an outlay of Rs.8146.21 crore and completion period of 72 months
**Executive Summary: Tato II Hydro Electric Project Investment Proposal**
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, has approved an investment of Rs. 8146.21 crore for the construction of the 700 MW Tato II Hydro Electric Project (HEP) in the Shi Yomi District of Arunachal Pradesh. The project, with an installed capacity of 700 MW (4 x 175 MW), is projected to produce 2738.06 MU of energy. The estimated completion timeframe is 72 months.
The project will be implemented through a Joint Venture between the North Eastern Electric Power Corporation Ltd. (NEEPCO) and the Government of Arunachal Pradesh. The Government of India will provide Rs. 458.79 crore in budgetary support for infrastructure development (roads, bridges, and associated transmission lines) and Rs. 436.13 crore as Central Financial Assistance towards the State's equity share.
Arunachal Pradesh will benefit from 12% free power and an additional 1% towards the Local Area Development Fund (LADF). The project is expected to improve the power supply within the state and contribute to the balancing of the national grid. Furthermore, it is expected to stimulate socio-economic development in the region, aligning with the Aatmanirbhar Bharat Abhiyan, by providing opportunities for local suppliers, enterprises, and MSMEs, as well as generating direct and indirect employment. Infrastructure improvements include the development of approximately 32.88 kilometers of roads and bridges, primarily for local use. A dedicated project fund of Rs. 20 crore will finance essential infrastructure like hospitals, schools, marketplaces, and playgrounds. The local population will also benefit from compensation, employment opportunities, and Corporate Social Responsibility (CSR) activities.
Key Entities Referenced
TatoII Hydro Electric Project: A 700 MW hydro electric project to be constructed in Arunachal Pradesh.
Shi Yomi District, Arunachal Pradesh: The district and state in India where the TatoII Hydro Electric Project is located.
Cabinet Committee on Economic Affairs: A committee chaired by the Prime Minister of India that approved the investment for the TatoII Hydro Electric Project.
Shri Narendra Modi: The Prime Minister of India.
North Eastern Electric Power Corporation Ltd. NEEPCO: A joint venture partner in the TatoII Hydro Electric Project.
Government of Arunachal Pradesh: A joint venture partner in the TatoII Hydro Electric Project.
Aatmanirbhar Bharat Abhiyan: An initiative of the Government of India focused on self-reliance.
Local Area Development Fund LADF: A fund to benefit the state, in addition to the 12% free power
Ministry of Power
Cabinet approves Investment Proposal for
construction of 700 MW Tato-II Hydro Electric Project
in Shi Yomi District of Arunachal Pradesh with an
outlay of Rs.8146.21 crore and completion period of
72 months
Posted On: 12 AUG 2025 3:30PM by PIB Delhi
The Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi today has
approved investment of Rs.8146.21 crore for construction of Tato-II Hydro Electric Project (HEP) in Shi
Yomi District of Arunachal Pradesh. The estimated completion period for the project is 72 months.
The project with an installed capacity of 700 MW (4 x 175 MW) would produce 2738.06 MU of energy. The
Power generated from the Project will help improve the power supply position in the state of Arunachal
Pradesh and will also help in balancing of the national Grid.
The Project will be implemented through a Joint Venture Co. between North Eastern Electric Power
Corporation Ltd. (NEEPCO) and the Government of Arunachal Pradesh. Govt. of India shall extend
Rs.458.79 crore as budgetary support for construction of roads, bridges and associated transmission line under
enabling infrastructure besides Central Financial Assistance of Rs.436.13 crore towards equity share of the
State.
The state would be benefitted from 12% free power and another 1% towards Local Area Development Fund
(LADF) besides significant infrastructure improvement and socio-economic development of the region.
The Project is in line with the aims and objectives of Aatmanirbhar Bharat Abhiyan, would provide various
benefits to local suppliers/enterprises/MSMEs including direct and indirect employment opportunities.
There will be significant improvement in infrastructure, including the development of around 32.88
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, marketplaces,
playgrounds, etc. to be financed from dedicated project funds of Rs.20 crore. Local populace shall also be
benefitted from many sorts of compensations, employment and CSR activities.
***
MJPS/BM
(Release ID: 2155472)