Arunachal Cabinet Greenlights 50% SGST Reimbursement for Kalai II Hydro Project
The decision, aimed at attracting investment in the power sector, is expected to accelerate the project’s completion and enhance Arunachal Pradesh’s energy infrastructure.

ITANAGAR – In a significant boost to the state’s energy sector, the Arunachal Pradesh State Cabinet, chaired by Chief Minister Pema Khandu, has approved a 50% reimbursement of the State Goods and Services Tax (SGST) for the 1200 MW Kalai II Hydro Electric Project.
The decision, aimed at attracting investment in the power sector, is expected to accelerate the project’s completion and enhance Arunachal Pradesh’s energy infrastructure.
In a separate administrative reform, the Cabinet approved for assigning Deputy Director, Rural Development, to implement RD and CSS schemes in the districts. This move results from the fact that the Govt of India has discontinued DRDA since 2022 making the post of Project Director defunct, who used to implement CSS schemes in the districts.
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The in-principle approval is to replace the post of PD with Deputy Director (RD). The Cabinet observed that for implementation, monitoring and evaluation of Centrally Sponsored Schemes, a district RD office headed by a deputy director is needed in all the districts. Further, the move will provide for career progression of RD cadre officers.
The Cabinet also reviewed on the detail status and progress of Assam-Arunachal boundary matter.