The Union government on Tuesday approved a major investment worth over Rs 8,000 crore in Arunachal Pradesh, giving a major boost to the state’s power and infrastructure sector. The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, sanctioned the construction of the 700 MW Tato-II Hydro-Electric Project in the Shi Yomi district.According to a press release, the project is estimated to be completed in 72 months and will cost Rs 8,146.21 crore.Under the agreement, Arunachal Pradesh will receive 12% free power and an additional 1% for the Local Area Development Fund (LADF).With an installed capacity of 700 MW (4 x 175 MW), the hydro project is expected to generate 2,738.06 million units of energy, which will help in strengthening the electricity supply in the state and also help balance the national grid.The project will be implemented through a joint venture between North Eastern Electric Power Corporation Ltd (NEEPCO) and the Government of Arunachal Pradesh. The Centre will provide Rs 458.79 crore as budgetary support for the construction of roads, bridges and an associated transmission line under enabling infrastructure, along with Central Financial Assistance of Rs 436.13 crore towards the state’s equity share.The statement added that the project would bring “significant infrastructure improvement and socio-economic development of the region.”Infrastructure upgrades will include around 32.88 kilometres of new roads and bridges, which will largely be available for local use. The district will also see the development of essential facilities such as hospitals, schools, marketplaces and playgrounds, financed from dedicated project funds of Rs 20 crore.The project is aligned with the aims of the Aatmanirbhar Bharat Abhiyan, promising benefits to local suppliers, enterprises and MSMEs, as well as both direct and indirect employment opportunities.Local communities are also expected to gain from various forms of compensation, job creation and corporate social responsibility activities linked to the project.