Itanagar, Jan 31: Arunachal Pradesh is set to strengthen its power infrastructure with the commissioning of two major hydroelectric projects, involving an investment of approximately Rs 21,700 crore, officials said here on Saturday.
The projects are expected to significantly enhance electricity generation capacity while contributing to regional development and energy security in the state. An official of the Chief Minister’s Office (CMO) said that the state cabinet, chaired by Chief Minister Pema Khandu, on Saturday approved State Goods and Services Tax (SGST) reimbursement concessions for the two power projects.
The official said that to enhance the financial viability of large hydropower projects revived through Memoranda of Agreement (MoA) signed with Central Public Sector Undertakings in 2023, the Cabinet approved SGST reimbursement concessions for the Kalai II Hydroelectric Project (1,200 MW) and the Attunli Hydroelectric Project (680 MW).
The Kalai II Hydroelectric Project is being developed by THDC India Limited, and the Attunli Hydroelectric Project (680 MW) is being developed by Satluj Jal Vidyut Nigam (SJVN) Limited. THDC India Limited is registered as a Public Limited Company in July 1988 under the Companies Act, 1956, with equity participation between the Government of India and the Government of Uttar Pradesh, while SJVN is a joint venture between the Government of India and the Government of Himachal Pradesh.
The Kalai II project is located on the Lohit River in Anjaw district, while the Attunli project is on the Tangon (Talo) River in Dibang Valley district. According to the official, both power projects will be implemented through joint venture companies, with the Arunachal Pradesh government holding a 26 per cent equity stake.
These two projects involve a cumulative investment of approximately Rs 21,700 crore and are expected to generate around Rs 458 crore annually in free power and Rs 84 crore annually under the Local Area Development Fund after commissioning, he said.
In addition to substantial employment and self-employment opportunities, the projects are expected to contribute significantly to long-term socio-economic development in the project-affected areas. In line with provisions of the MoAs, the joint venture companies will reserve employment opportunities for local tribal communities, including 25 per cent of Group A and B posts, 50 per cent of Group C and D posts, and 25 per cent of skilled and unskilled jobs, ensuring inclusive participation of local populations.
The Cabinet also approved the provision of annuity grants for the entire lifetime of hydropower projects to project-affected families through the Local Area Development Fund, in addition to land and property compensation and resettlement and rehabilitation packages.
This decision aims to make project-affected families long-term partners in the commissioning and operation of hydropower projects. To strengthen senior technical leadership, the Cabinet approved a one-time relaxation of the Superintending Engineer (SE) Common Recruitment Rules, 2014, to promote to the post of Superintending Engineer (Civil) in the Department of Hydro Power Development.
The move is intended to ensure continuity and timely execution of ongoing and upcoming hydropower projects. The official said that the cabinet further approved the Renovate–Own–Operate–Transfer (ROOT) Policy for Small Hydropower Projects, 2026, aimed at reviving underperforming small hydropower projects by attracting private investment, improving operational efficiency, and increasing renewable energy generation in line with the State’s Decade of Hydropower (2025–2035) vision.
The state cabinet, chaired by the Chief Minister, held at Anini, the district headquarters of Dibang Valley, under the government of Arunachal Pradesh’s flagship ‘Cabinet Aapke Dwar’ initiative. The meeting marked another significant step towards decentralised governance by taking key policy decisions closer to the people.
The cabinet deliberated on a wide range of developmental, administrative, and institutional reforms and approved several important decisions aimed at strengthening governance systems, improving transparency, enhancing service delivery, and promoting inclusive growth across sectors.
The Chief Minister further announced that a detailed feasibility study for the development of an Advanced Landing Ground (ALG) at Anini will be conducted by an expert team to assess the technical and operational viability, with the district’s strategic location and connectivity requirements in mind.
The announcements made at Anini reflect the Government’s resolve to ensure balanced regional development, strengthen border districts, and respond swiftly to local aspirations through direct engagement and decentralised decision-making under the ‘Cabinet Aapke Dwar’ framework.
IANS
