Did the Arunachal cabinet just approve groundbreaking power projects near the India-China border?

Itanagar, May 13 (NationPress) In a historic move, Chief Minister Pema Khandu advanced the ‘Cabinet Aapke Dwar’ initiative by convening the cabinet meeting at Kibithu, the final frontier along the India-China (Tibet) border located in Anjaw district.

A senior official from the Chief Minister’s Office (CMO) noted that several pivotal decisions were made during the cabinet meeting, presided over by Khandu, aimed at expediting the state’s development. The cabinet sanctioned the establishment of a Joint Venture Company, NEEPCO Arunachal Hydro Power Corporation Limited, in collaboration with NEEPCO to facilitate the execution of five hydro power projects within the state. These projects encompass Tato-I, Tato-II, Heo, Naying, and Hirong, all situated in Shi-Yomi district.

As per the CMO official, Tato I and Heo hydroelectric projects (HEPs) have already secured approval from the Cabinet Committee on Economic Affairs at the Central government level, with construction anticipated to commence shortly. The formation of this Joint Venture Company signifies a critical advancement towards the commissioning of 13 large HEPs revitalized by the state government after signing Memoranda of Agreements (MoA) with Central PSUs in 2023.

North Eastern Electric Power Corporation Limited (NEEPCO) stands as a prominent entity in power generation across the northeastern region of India, collaborating with the Ministry of Power and northeastern states since 1976 to tap into the region's vast power potential.

Recognizing the vital role of hydropower in bolstering the state’s economic growth, the Cabinet also endorsed amendments to the State Hydro Power Policy, 2008 and Local Area Development Fund Guidelines, 2022, permitting a contribution of one percent of free power from power producers, including PSUs, on behalf of the state government to Local Area Development Funds formed for the benefit of Project Affected Areas. These changes are expected to facilitate increased and timely contributions to the Local Area Development Fund, thus enhancing the welfare of Project Affected Families without imposing extra costs on the State's finances, as noted in an official statement.

The Cabinet further approved the restoration of the Gongri HEP (144 MW) to the Special Purpose Vehicle (SPV) M/s Dirang Energy Private Limited under the Arunachal Pradesh Restoration of Terminated Large Hydropower Policy under Special Circumstances, 2025. This restoration marks Gongri HEP as the first project reinstated under this groundbreaking policy.

Additionally, the Cabinet ratified the restructuring of the Department of Hydro Power Development, which includes zonal, circle, and division offices, by delegating responsibilities to Chief Engineers and their subordinate officers in a basin-wise manner. This restructuring is aimed at fostering seamless collaboration with PSUs and Independent Power Producers to promote the timely commissioning of all HEPs within the State.

To strengthen the hydro sector, approval was also granted for 84 technical and 12 non-technical positions. The statement concluded: “With this decision, Hydropower is projected to be the largest contributor to the economy of the State and Nation - Towards Vikshit Arunachal Pradesh.”