The Prime Minister Narendra Modi-led Cabinet on Tuesday approved an investment proposal for the construction of the 700 MW Tato-II Hydro Electric Project in Shi Yomi district of Arunachal Pradesh with an outlay of Rs 8,146.21 crore.

According to an official release by the Cabinet, the project is estimated to be completed in six years.

With an installed capacity of 700 MW (4 x 175 MW), the hydro electric project is expected to produce 2,738.06 million units of energy annually.

As per PIB’s report, the power generated from the project will help improve the electricity supply position in Arunachal Pradesh and also contribute to balancing the national grid

The project will be implemented through a joint venture between the North Eastern Electric Power Corporation Ltd (NEEPCO) and the Government of Arunachal Pradesh.

The Centre will provide Rs 458.79 crore for the construction of roads, bridges and associated transmission lines under enabling infrastructure, in addition to the assistance of Rs 436.13 crore towards the equity share of the state.

Arunachal Pradesh will benefit from 12 per cent free power and an additional 1 per cent for the Local Area Development Fund (LADF), along with infrastructure upgrades and socio-economic development.

The project includes the development of 32.88 kilometres of roads and bridges, which will be available for local use.

The district will also see the construction of hospitals, schools, marketplaces and playgrounds, financed through funds worth Rs 20 crore.

The release stated that the local population will also benefit from compensation, employment opportunities and corporate social responsibility activities linked to the project.

The approval comes amid China’s move to proceed with its mega dam project on the Brahmaputra River.

Beijing has begun building what is billed as the world’s largest dam in ecologically fragile Tibet, close to Arunachal Pradesh, at a cost of about $ 170 billion.

The project has raised concerns in India and Bangladesh, though China has maintained it will not harm downstream countries.