Arunachal Pradesh Cabinet Approves SGST Relief for Two Major Hydropower Projects

ITANAGAR: The Arunachal Pradesh cabinet has approved SGST reimbursement concessions for two major hydropower projects to improve their financial viability, according to a statement released on Thursday.

In its first meeting of the year, chaired by Chief Minister Pema Khandu, the state cabinet granted State GST (SGST) relief to the 700 MW Tato II Hydroelectric Project on the Siyom River in Shi Yomi district and the 1,720 MW Kamala Hydroelectric Project on the Kamala River in Kamle district.

The projects, which will be developed through joint ventures between the state government and CPSUs, will see the state government holding a 26% equity stake. These initiatives will require a combined investment of approximately Rs 35,000 crore.

Once completed, the projects are expected to generate nearly Rs 470 crore in free power for the state and Rs 79 crore annually through local area development funds. Both projects are part of the 13 large stalled initiatives revitalized by the state government in 2023 through agreements with four CPSUs.

The cabinet approved a policy for the restoration of large hydropower projects that were previously terminated under special circumstances. This policy aims to restart projects that had made significant progress before termination, fostering a development-focused environment, encouraging investment, and creating job opportunities.

The cabinet also recommended to the Centre the establishment of a 100-seat medical college and a 420-bed hospital in Namsai under the aspirational district program.

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