Introduction
In a significant move to bolster the financial viability of large hydropower initiatives, the Arunachal Pradesh Cabinet, led by Chief Minister Pema Khandu, has sanctioned State Goods and Services Tax (SGST) reimbursement concessions for two major hydropower projects: the Tato II and Kamala Hydroelectric Projects.
Details of the Hydropower Projects
Tato II Hydroelectric Project
- Location: Siyom River, Shi Yomi District
- Capacity: 700 Megawatts (MW)
Kamala Hydroelectric Project
- Location: Kamala River, Upper Subansiri District
- Capacity: 1,720 MW
Both projects will be executed through joint ventures between the state government and Central Public Sector Undertakings (CPSUs), with the state holding a 26% equity stake.
Financial Implications
The combined investment for these projects is approximately ₹35,000 crore. Upon commissioning, they are projected to generate:
- Free Power Revenue: Around ₹470 crore annually
- Local Area Development Fund: Approximately ₹79 crore per year
These initiatives are part of the 13 previously stalled large hydropower projects revitalized through Memoranda of Agreement (MoAs) with four CPSUs in 2023.
Socio-Economic Benefits
The development of these hydropower projects is anticipated to:
- Create Employment: Significant job and self-employment opportunities through infrastructure development and ancillary services
- Enhance Infrastructure: Improvements in roads, healthcare, and educational facilities
- Foster Socio-Economic Growth: Long-term benefits for local communities and the region
Additionally, these projects will contribute to harnessing Arunachal Pradesh’s substantial hydroelectric potential of 58,000 MW.
Policy for Restoration of Terminated Projects
The Cabinet also approved the “Arunachal Pradesh Policy for Restoration of Terminated Large Hydropower Projects under Special Circumstances, 2025.” This policy aims to revive large hydropower projects that had achieved significant on-site progress before termination, thereby promoting a development-focused environment and attracting investments and employment opportunities.
Conclusion
These strategic decisions by the Arunachal Pradesh government underscore its commitment to sustainable development, economic growth, and the well-being of its residents through the advancement of hydropower infrastructure.
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