Centre Approves Rs 8,146 Crore Tato-II Hydro Project in Arunachal Pradesh
The Tato-II HEP, to be executed through a joint venture between the North Eastern Electric Power Corporation Ltd. (NEEPCO) and the Government of Arunachal Pradesh, is expected to be completed within 72 months.
NEW DELHI- In a strategic move to bolster energy security and regional development, the Indian government, led by Prime Minister Narendra Modi, has approved an investment of Rs 8,146.21 crore for the construction of the 700 MW Tato-II Hydro Electric Project (HEP) in Shi Yomi District, Arunachal Pradesh.
The decision, announced by the Cabinet Committee on Economic Affairs (CCEA), comes at a time when China is advancing its massive dam project on the Brahmaputra River in Tibet, raising concerns in India and downstream Bangladesh.
The Tato-II HEP, to be executed through a joint venture between the North Eastern Electric Power Corporation Ltd. (NEEPCO) and the Government of Arunachal Pradesh, is expected to be completed within 72 months.
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With an installed capacity of 700 MW (4 x 175 MW), the project is projected to generate 2,738.06 million units of energy annually, significantly enhancing Arunachal Pradesh’s power supply and contributing to the stability of the national grid.
The Centre will provide Rs 458.79 crore for enabling infrastructure, including 32.88 kilometers of roads and bridges, which will also benefit local communities. Additionally, Rs 436.13 crore has been allocated as central financial assistance toward Arunachal Pradesh’s equity share in the project.
The state will receive 12% free power and an additional 1% for the Local Area Development Fund (LADF), alongside Rs 20 crore dedicated to building essential infrastructure such as hospitals, schools, marketplaces, and playgrounds.
The approval of the Tato-II project aligns with India’s Aatmanirbhar Bharat Abhiyan, aiming to foster self-reliance through infrastructure development and socio-economic growth. The project is expected to generate direct and indirect employment opportunities, benefiting local suppliers, enterprises, and MSMEs. It will also provide compensation and corporate social responsibility (CSR) initiatives for the local population, enhancing the region’s socio-economic fabric.
The timing of the approval is significant, as it coincides with China’s ongoing construction of a $170 billion mega-dam on the Brahmaputra River in Tibet, close to Arunachal Pradesh. This Chinese project, touted as the world’s largest dam, has sparked concerns in India about potential impacts on water flow and ecological balance downstream. While China claims the dam will not harm downstream countries, India’s Tato-II project is seen as a strategic countermeasure to assert water rights and secure the Northeast’s energy and environmental future.
The Tato-II HEP, alongside other approved projects like the 186 MW Tato-I and 240 MW Heo HEPs in the same district, underscores India’s commitment to harnessing Arunachal Pradesh’s hydropower potential while addressing regional security concerns.
The Tato-II project is poised to transform Arunachal Pradesh’s energy landscape, drive socio-economic development, and reinforce India’s position in the geopolitically sensitive region amid China’s Brahmaputra dam push.
