Arunachal cabinet meets near India-China border, approves mega power projects

A senior official of the Chief Minister’s Office (CMO) said that several key decisions were taken in the cabinet, chaired by Khandu, to accelerate the development of the state. He said that the Cabinet approved the formation of a Joint Venture Company -- NEEPCO Arunachal Hydro Power Corporation Limited’ -- between the state government and NEEPCO for the implementation of five hydro power projects in the state. These projects include Tato-I, Tato-II, Heo, Naying and Hirong in the state of Shi-Yomi district.

According to the official of these five projects, the Tato I and Heo hydroelectric projects (HEPs) have already received approval from the Cabinet Committee on Economic Affairs of the Central government, and construction is likely to begin soon. The approval for the formation of this Joint Venture Company marks a significant step forward in the commissioning of 13 large HEPs which were rejuvenated by the state government by signing Memoranda of Agreements (MoA) with Central PSUs in 2023.

North Eastern Electric Power Corporation Limited (NEEPCO) is a leading player in power generation in the northeastern region of India and has been working closely with the Ministry of Power and northeastern states since 1976 to harness the abundant power potential available in the region.

Acknowledging the significance of hydropower in economic growth of the state, the Cabinet also approved modifications in the State Hydro Power Policy, 2008 and Local Area Development Fund Guidelines, 2022 allowing contribution of one per cent of free power by power producers, including PSUs, on behalf of the state government to Local Area Development Funds established for the welfare of Project Affected Areas. These modifications will enable higher and timely contributions to the Local Area Development Fund, enhancing the welfare of Project Affected Families with no additional cost to the State exchequer, an official statement said.

The Cabinet also granted approval for the restoration of the Gongri HEP (144 MW) to the Special Purpose Vehicle (SPV) M/s Dirang Energy Private Limited under the Arunachal Pradesh Restoration of Terminated Large Hydropower Policy under Special Circumstances, 2025. With this approval, Gongri HEP became the first project restored under this innovative policy.

The Cabinet also approved the restructuring of the Department of Hydro Power Development, including offices at the Zonal, Circle and Division levels by allocating works to Chief Engineers and their subordinate officers in a basin-wise manner. This restructuring would enable seamless coordination with PSUs and Independent Power Producers and help promote the timely commissioning of all HEPs in the State.

To bolster the Hydro sector, 84 technical and 12 non-technical posts were also given the go-ahead by the cabinet. The statement said: “It is expected that with this decision, Hydropower will be the largest contributor to the economy of the State and Nation- Towards Vikshit Arunachal Pradesh.”