Arunachal Pradesh Cabinet approves SGST grants for hydropower projects

Itanagar: In a major decision to enhance the financial viability of large hydropower projects rejuvenated through Memoranda of Association (MoAs) with Central Public Sector Undertakings (CPSUs), the Arunachal Pradesh Cabinet has approved the grant of SGST reimbursement concessions for several hydropower projects in the northeastern state.
The decision was made during the State Cabinet meeting held in Itanagar on Wednesday under the chairmanship of Chief Minister Pema Khandu.
"The State Cabinet approved the grant of SGST reimbursement concessions for the Tato II Hydroelectric Project (700 MW) and the Kamala Hydroelectric Project (1,720 MW). The Tato II HEP, is located on Siyom River in Shi Yomi district and the Kamala HEP is located on Kamala River in Upper Subansiri district. Both these projects will be implemented in the joint ventures between the state government and the respective CPSUs, with the State Government holding 26 per cent equity share in the joint venture," said the Arunachal Pradesh Chief Minister Office in a statement.
The press note also stated: "These projects entail a cumulative investment of around Rs 35,000 crore and are expected to generate close to Rs 470 crore in free power and Rs 79 crore Local Area Development Fund every year after commissioning."
"These two projects are part of the 13 stalled large HEPs rejuvenated by the state government through the signing of MOAs with four CPSUs in 2023. The two HEPs will generate significant employment and self-employment opportunities through infrastructure development and ancillary services, along with benefits to local communities through enhanced infrastructure, including roads, healthcare, and educational facilities, fostering long-term socioeconomic growth. The projects will upskill local workers, create a pool of skilled labour, and boost regional economic activity, contributing to Arunachal Pradesh's development, as well as harnessing Arunachal Pradesh's significant hydroelectric generation potential of 58,000 MW," said the release.
The State Cabinet also decided to recommend to the Government of India the proposal to set up a 100-seat Medical College and a 420-bedded hospital at Namsai under the Aspirational District Programme.
"This project is planned under the Public-Private Partnership (PPP) model and aims to bridge the gap in healthcare services and medical education in the region. The total project cost is Rs 375 crore," said the statement.
The State Cabinet also approved the Arunachal Pradesh Policy for Restoration of Terminated Large Hydropower Projects under Special Circumstances, 2025.
This policy aims to revive terminated large hydropower projects that achieved substantial progress at the site. This will help facilitate a development-focused environment through timely project restoration and promote investments and employment opportunities while enhancing the ease of doing business in the state.
In an effort to enhance administrative efficiency and optimise citizen service delivery, the State Cabinet also approved to upgrade of 20 JE (Civil) posts in the Department of Hydropower Development to 20 ASW (Civil) and AE (Civil) posts to streamline the efficient functioning of the Department and ensure proper manning of positions at the divisional and district levels, and address issues of stagnation and lack of career advancement opportunities for the incumbent officers.
The State Cabinet approved the creation of 36 posts in the Department of Land Management including one Group A Post, 15 Group B posts and 20 Group C posts to enhance the operational capacity of the Department; 32 teaching and non-teaching posts were approved for the Government Engineering College, Tezu, to enhance its academic and administrative capacity, and provide new age-learning and skilling opportunities for students.
The Cabinet also approved the creation of an Electrical Sub-Division at Chambang, along with manpower, to enhance power management in Kurung Kumey district, and sanctioned a new Public Works Department (PWD) Division at Koloriang and a Sub-Division at Damin to accelerate infrastructure development in the district.