Cabinet approves two hydel projects worth ₹3689 crore in Arunachal Pradesh

Guwahati, Nov 25: The Cabinet Committee on Economic Affairs (CCEA) has given a big boost to hydel power sector development in Arunachal Pradesh and has cleared two projects costing Rs 3689 crores.

Chairing the CCEA meeting PM Narendra Modi has approved investment of Rs.1750 crore for construction of Tato-I Hydro Electric Project (HEP) in Shi Yomi District of Arunachal Pradesh. The estimated completion period for the project is 50 months.

The CCEA has approved also approved an investment of Rs.1939 crore for construction of Heo Hydro Electric Project (HEP) in Shi Yomi District of Arunachal Pradesh. The estimated completion period for the project is 50 months.

The Tato project with an installed capacity of 240 MW (3 x 80 MW) would produce 1000 Million Units (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 Company between North Eastern Electric Power Corporation Ltd. (NEEPCO) and the Government of Arunachal Pradesh. Government of India shall extend Rs.127.28 crore as budgetary support for construction of roads, bridges and associated transmission line under enabling infrastructure besides Central Financial Assistance of Rs.130.43 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, in line with the aims and objectives of Aatmanirbhar Bharat Abhiyan, would provide various benefits to local suppliers/ enterprises/ MSMEs. During the construction phase, the project will require approximately 200 personnel from NEEPCO and around 400 workers from the contractor. In addition, the project will create significant indirect employment opportunities for the local community through various small contracts and services during its execution. The project would also provide employment during Operation & Maintenance. Furthermore, its development would create employment in sectors such as transportation, tourism, small-scale businesses.

The Heo hydel project, with an installed capacity of 240 MW (3 x 80 MW), is expected to produce 1,000 Million Units (MU) of energy and will be completed in 50 months.

The generated power will enhance the state’s electricity supply and contribute to balancing the national grid. The project will be executed through a joint venture between the North Eastern Electric Power Corporation Ltd. (NEEPCO) and the Government of Arunachal Pradesh.

The Central Government will provide ₹127.28 crore as budgetary support for enabling infrastructure, including roads, bridges, and transmission lines, and ₹130.43 crore as Central Financial Assistance for the state’s equity share. Arunachal Pradesh will benefit from 12% free power, 1% for the Local Area Development Fund (LADF), and significant socio-economic and infrastructure improvements.

Aligned with the Aatmanirbhar Bharat Abhiyan, the project will support local enterprises, MSMEs, and suppliers. It will employ approximately 200 NEEPCO personnel and 400 contractor workers during construction, alongside creating indirect job opportunities in sectors like transportation, tourism, and small-scale businesses. Further employment will be generated during the operation and maintenance phases.

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