The Arunachal Pradesh cabinet, in a significant move to bolster the state's energy infrastructure and economic development, has approved substantial State Goods and Services Tax (SGST) reimbursement concessions for two major hydroelectric projects. This decision was taken during the Cabinet Aapke Dwar meeting chaired by Chief Minister Pema Khandu at Anini in the Dibang Valley district.
Boosting Financial Viability of Hydro Projects
The cabinet's approval focuses on the 1,200 MW Kalai II hydroelectric project located in Anjaw district and the 680 MW Attunli project in Dibang Valley. These projects, which were rejuvenated through memoranda of agreement signed by the state government with Central Public Sector Undertakings in 2023, are set to benefit from enhanced financial viability through these concessions.
Investment and Expected Returns
The two hydroelectric projects involve a cumulative investment of approximately Rs 21,700 crore. Upon commissioning, they are projected to generate substantial annual revenues:
- About Rs 458 crore annually from free power
- Approximately Rs 84 crore annually under the local area development fund
Support for Project-Affected Families
In a move to ensure inclusive development, the cabinet has approved the provision of a grant of annuity for the entire lifetime of the projects to families affected by the projects. This annuity will be disbursed through the Local Area Development Fund (LADF).
This financial support is in addition to existing compensations, including:
- Land and property compensations
- Resettlement packages
- Rehabilitation packages
Policy Initiatives for Small Hydropower Projects
The cabinet also gave its nod to the Renovate–Own–Operate–Transfer Policy specifically designed for small hydropower projects. This policy aims to:
- Revive existing small hydropower projects
- Improve their operational performance
- Attract private investment into the sector
Administrative Reforms in Recruitment
To ensure continuity and efficiency in recruitment administration, the cabinet approved replacing the Arunachal Pradesh Staff Selection (Amendment) Ordinance, 2025 with a Bill. This legislative change will enable the appointment of a retired officer as chairperson of the Arunachal Pradesh Staff Selection Board, working alongside serving officers.
Broader Policy Objectives
The cabinet meeting deliberated on a wide range of policy matters, with decisions aimed at:
- Strengthening institutions across various sectors
- Improving transparency in governance
- Enhancing service delivery mechanisms
- Promoting inclusive development throughout the state
According to an official report, these comprehensive decisions reflect the state government's commitment to fostering sustainable development while addressing the needs of local communities and boosting the energy sector's growth in Arunachal Pradesh.
