ITANAGAR- Arunachal Pradesh: In a big move aimed at boosting the financial feasibility of large hydropower projects revived through agreements with Central Public Sector Undertakings (CPSUs), the Arunachal Pradesh Cabinet has approved SGST reimbursement concessions for several key hydropower initiatives across the state.

The decision was taken during a Cabinet meeting held in Itanagar on Wednesday, chaired by Chief Minister Pema Khandu.

“The Cabinet has sanctioned SGST reimbursement concessions for the Tato II Hydroelectric Project (700 MW) and the Kamala Hydroelectric Project (1720 MW),” the Chief Minister’s Office announced in a statement. The Tato II project, located on the Siyom River in Shi Yomi district, and the Kamala project, situated on the Kamala River in Upper Subansiri district, will be developed as joint ventures between the state government and CPSUs, with the state government holding a 26% equity share in each project.

According to the press release, these two projects will collectively involve an investment of approximately Rs.35,000 crore and are expected to generate around Rs.470 crore annually in free power, along with Rs.79 crore annually for the Local Area Development Fund once operational.

“These projects are among 13 large hydropower initiatives that were stalled but revived by the state government in 2023 through agreements with four CPSUs. Once completed, the projects will create significant employment and self-employment opportunities, boost infrastructure development, and bring socioeconomic benefits to local communities, including improved roads, healthcare, and education facilities,” the release stated.

The projects aim to enhance the skillset of local workers, establish a skilled labor pool, and stimulate regional economic growth, tapping into Arunachal Pradesh’s immense hydroelectric potential of 58,000 MW.

Approval for Medical College and Hospital at Namsai

The Cabinet also decided to recommend establishing a 100-seat Medical College and a 420-bed hospital in Namsai under the Aspirational District Programme. This Rs.375 crore project, proposed under a Public-Private Partnership (PPP) model, seeks to address gaps in healthcare services and medical education in the region.

New Policy for Terminated Hydropower Projects

The state government also approved the Arunachal Pradesh Policy for Restoration of Terminated Large Hydropower Projects under Special Circumstances, 2025. This policy aims to revive stalled hydropower projects that have made significant progress, fostering an environment of timely project restoration, investment promotion, and job creation while improving the ease of doing business in the state.

More Decisions to Boost Infrastructure and Services

To improve administrative efficiency, the Cabinet approved the upgrade of 20 JE (Civil) posts to ASW (Civil) and AE (Civil) posts in the Department of Hydropower Development, ensuring better resource management at divisional and district levels.

It also sanctioned the creation of 36 new positions in the Department of Land Management, including roles across Group A, B, and C categories, to strengthen departmental operations. Additionally, 32 teaching and non-teaching posts were approved for Government Engineering College, Tezu, to improve its academic and administrative capabilities.

To further enhance infrastructure and power management, the Cabinet sanctioned the establishment of an Electrical Sub-Division at Chambang in Kurung Kumey district. It also approved a new Public Works Department (PWD) Division at Koloriang and a Sub-Division at Damin to expedite infrastructure projects in the area.