The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved an investment of Rs 17.5 billion for the Tato-I Hydro Electric Project (HEP) in Arunachal Pradesh's Shi Yomi district. With an installed capacity of 186 MW, the project is expected to generate 802 million units (MU) of energy annually, bolstering power supply in the state and contributing to the national grid's stability.

To be completed in 50 months, the project will be executed by a joint venture between the North Eastern Electric Power Corporation Ltd. (NEEPCO) and the Arunachal Pradesh government. The government has allocated  Rs 773.7 million for enabling infrastructure, such as roads and transmission lines, and Rs 1.20 billion as central financial assistance for the state’s equity share in the venture.

Arunachal Pradesh will receive 12% of the generated power as free electricity, with an additional 1% allocated to a Local Area Development Fund (LADF). The project aims to boost socio-economic development in the region by funding local infrastructure, including roads, schools, hospitals, and marketplaces. A dedicated Rs 150 million will support these initiatives, along with CSR-led community welfare programs.