The Indian government has recently approved a transformative hydroelectric mega project in Arunachal Pradesh — the 700 MW Tato-II Hydro Electric Project, with an investment exceeding Rs 8,000 crore (approximately Rs 8,146.21 crore). This ambitious initiative, sanctioned by the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi, marks a significant stride in boosting the state’s power infrastructure and driving local socio-economic development.
Located in the Shi Yomi district of Arunachal Pradesh, the Tato-II project is designed as a run-of-the-river hydroelectric scheme with an installed capacity of 700 MW, consisting of four turbines each generating 175 MW. Once completed within a 72-month timeline, it is expected to generate around 2,738.06 million units (MU) of clean energy annually. This substantial power output will not only enhance electricity supply in Arunachal Pradesh but also contribute to stabilizing the national power grid, a critical component for India’s renewable energy integration and energy security.
A standout feature of the project is the provision of 12% free power to Arunachal Pradesh, along with an additional 1% allocation for the Local Area Development Fund (LADF). This generous free power allotment underscores the government’s commitment to supporting the local population directly through energy cost reduction and improved accessibility.
Beyond power generation, the Tato-II project promises profound local development benefits. The government plans significant infrastructure upgrades including the construction of approximately 32.88 kilometers of roads and bridges, which will primarily serve local communities. Additionally, a dedicated fund of Rs 20 crore has been earmarked for establishing essential facilities such as hospitals, schools, marketplaces, and playgrounds—key elements expected to uplift the quality of life in the region.
The implementation of the project will be carried out through a joint venture between North Eastern Electric Power Corporation Limited (NEEPCO) and the Government of Arunachal Pradesh. The Centre has also committed financial support beyond the project investment, including Rs 458.79 crore for enabling infrastructure like roads, bridges, and transmission lines, and Rs 436.13 crore as Central Financial Assistance for the state’s equity share.
Strategically aligned with the Aatmanirbhar Bharat Abhiyan, the project aims to boost local economic activity, fostering opportunities for local suppliers, enterprises, MSMEs, and creating numerous direct and indirect employment opportunities during construction and beyond. It embodies a holistic approach to development—not just power generation but inclusive and sustainable growth for one of India’s remotest districts.
The project also highlights environmental and community considerations, aiming to minimize ecological impact through its run-of-the-river design and incorporating community engagement and compensation measures for affected populations.
In essence, the Tato-II Hydro Electric Project stands as a monumental leap for Arunachal Pradesh’s energy landscape and regional development. With Rs 8,000 crore invested, 12% free power guaranteed for locals, significant infrastructure upgrades, and socio-economic development measures, the project is set to energize the region’s economy, enhance quality of life, and reinforce India’s commitment to renewable energy
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