The Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi, approved a Rs 17.50 billion investment for the Tato-I Hydro Electric Project (HEP) in Arunachal Pradesh's Shi Yomi district.

As per an official release, the project is expected to be completed within 50 months. It will have an installed capacity of 186 MW (3 x 62 MW) and is anticipated to produce 802 Million Units (MU) of energy annually. The generated power is aimed at enhancing the electricity supply in Arunachal Pradesh and contributing to the stabilization of the national grid.

The project will be executed through a collaboration between the North Eastern Electric Power Corporation (NEEPCO) and the Government of Arunachal Pradesh. The Government of India will allocate Rs 770.37 million as budgetary support for infrastructure development, including roads, bridges, and transmission lines. Furthermore, the project will receive Central Financial Assistance of Rs 1.20 billion for the state's equity contribution. Arunachal Pradesh is set to benefit from 12 per cent free power, an additional 1 per cent designated for the Local Area Development Fund (LADF), and overall enhancements in regional infrastructure and socio-economic conditions.

The initiative includes the construction of approximately 10 kilometres of roads and bridges, which will primarily serve the local population. The district is also set to gain essential facilities such as hospitals, schools, vocational training institutes like ITIs, marketplaces, and playgrounds, supported by a dedicated Rs 150 million allocation. Additionally, the local community will receive compensation, employment opportunities, and benefits from CSR activities under the project.