In a significant push towards clean energy and regional development, the Cabinet Committee on Economic Affairs (CCEA) has approved the ₹8,146.21 crore Tato-II Hydro Electric Project in Shi Yomi district, Arunachal Pradesh. The 700 MW project, to be executed as a joint venture between the North Eastern Electric Power Corporation Limited (NEEPCO) and the Government of Arunachal Pradesh, is slated for completion within 72 months.
The Tato-II project is designed to generate 2,738.06 million units (MU) of clean electricity annually, contributing substantially to India’s renewable energy targets and aiding in balancing the national power grid. By harnessing the hydropower potential of the region, the initiative will strengthen electricity supply across the northeastern states and beyond, enhancing energy security for the country.
To support the project’s development, the Central Government has committed ₹458.79 crore for essential infrastructure works such as roads and bridges, and an additional ₹436.13 crore as financial assistance for state equity participation. This funding structure not only ensures the project’s financial viability but also promotes active participation from the state government.
Under the approved terms, Arunachal Pradesh will receive 12% of the power generated free of cost, boosting its electricity supply and revenue potential. Furthermore, 1% of the total power output will be earmarked for local area development, benefiting nearby communities through improved infrastructure, healthcare, education, and livelihood projects.
The project’s benefits extend far beyond energy production. The construction and operation phases are expected to generate substantial employment opportunities for local residents, providing both skilled and unskilled jobs. In addition, the project will stimulate growth for Micro, Small, and Medium Enterprises (MSMEs) by creating demand for goods, services, and infrastructure support.
A key component of the development is the construction of 32.88 km of road infrastructure, which will significantly improve connectivity in the remote Shi Yomi district. Better roads will facilitate not only project logistics but also socio-economic development by enhancing access to markets, healthcare, and education for local communities.
NEEPCO officials emphasized that the Tato-II Hydro Electric Project aligns with India’s commitment to sustainable and eco-friendly energy generation. With zero fuel costs and minimal greenhouse gas emissions, the project will help reduce reliance on fossil fuels and advance India’s climate action goals. The hydropower facility will also play a crucial role in maintaining grid stability by providing peaking power during high-demand periods.
Union ministers hailed the CCEA’s decision as a transformative step for Arunachal Pradesh, combining economic growth with environmental stewardship. They noted that the project’s integrated approach—covering energy generation, infrastructure development, and community welfare—will serve as a model for future hydropower initiatives across the country.
Once operational, the Tato-II Hydro Electric Project will stand as a landmark achievement in India’s renewable energy journey, delivering clean power, fostering inclusive development, and reinforcing the strategic importance of Arunachal Pradesh in the nation’s energy landscape
