The Arunachal Pradesh Cabinet went a step closer to five mega hydropower projects in its first meeting near the China border on Tuesday (May 13, 2025).

Chaired by Chief Minister Pema Khandu, the Cabinet meeting was held in Anjaw district’s Kibithu, India’s easternmost town, about 15 km from the Line of Actual Control separating the State from Tibet. The choice of Kibithu, at more than 4,000 feet above the mean sea level, as the venue was significant in light of the India-Pakistan conflict.

The Cabinet approved the formation of NEEPCO Arunachal Hydro Power Corporation Limited, a joint venture company between the State government and the North Eastern Electric Power Corporation Limited, a Central PSU. This company has been tasked with implementing five hydropower projects in the State’s Shi-Yomi district.

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The five projects – Heo, Hirong, Naying, Tato I, and Tato II – would have a combined capacity to generate 2,626 megawatts of electricity. The 240 MW Heo and the 186 MW Tato I, both on the Yarjep River, were approved by the Cabinet Committee on Economic Affairs in 2024.

The Heo project is estimated to cost ₹1,939 crore, while the estimate for Tato I is ₹1,750 crore.

“The approval for this joint venture company marks a significant step forward in the commissioning of 13 large hydroelectric projects, which were rejuvenated by the State government by signing memoranda of agreement with Central PSUs in 2023,” Mr. Khandu said.

Modified policy

Acknowledging the significance of hydropower in the economic growth of the State, the Cabinet also approved modifications in the State Hydro Power Policy, 2008, and the Local Area Development Fund Guidelines, 2022. This would allow the contribution of 1% 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.

The Cabinet also approved the restoration of the 144 MW Gongri Hydroelectric Project to Dirang Energy Private Limited, a special purpose vehicle, under the Arunachal Pradesh Restoration of Terminated Large Hydropower Policy under Special Circumstances, 2025.

The project, proposed on the Gongri River in the West Kameng district, has become the first to be restored under this policy.

Among the other decisions were the approval for restructuring the Department of Hydro Power Development to “allow seamless coordination with PSUs and independent power producers”, a transfer and posting policy for equitable and rational distribution of teachers and non-ministerial employees across government schools in the State, and the creation of 200 posts of home guards.