Page 53 - Policy Economic Report - August 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

meeting. The Union Minister instructed officials to take necessary steps to incorporate the suggestions
provided by the Members of the Consultative Committee and emphasized the importance of ensuring a
stable and high-quality power supply for consumers.

In his closing remarks, the Minister of State of Power and New & Renewable Energy highlighted India’s
remarkable achievement of reaching 50% of installed electricity capacity from non-fossil fuel sources—
five years ahead of the 2030 target. This milestone underscores India’s deep commitment to sustainable
development under the leadership of Hon’ble Prime Minister Shri Narendra Modi.

He emphasized that while renewable energy (RE) sources like solar and wind have driven this transition,
the backbone of a reliable, flexible, and modern power system will increasingly rely on Energy Storage
Systems (ESS). The Minister of State reiterated the multifaceted role of ESS, not just in generation but
across the energy value chain—from transmission and distribution to ancillary services and EV integration.
He called on all stakeholders to continue their support for building a resilient, affordable, and sustainable
energy future for India.

Cabinet approved Investment Proposal for construction of 700 MW Tato-II Hydro Electric Project in Shi
Yomi District of Arunachal Pradesh with an outlay of Rs. 8146.21 crore and completion period of 72
months

The Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi has
approved investment of Rs.8146.21 crore for construction of Tato-II Hydro Electric Project (HEP) in Shi
Yomi District of Arunachal Pradesh. The estimated completion period for the project is 72 months.

The project with an installed capacity of 700 MW (4 x 175 MW) would produce 2738.06 MU of energy.
The Power generated from the Project will help improve the power supply position in the state of
Arunachal Pradesh and will also help in balancing of the national Grid.

The Project will be implemented through a Joint Venture Co. between North Eastern Electric Power
Corporation Ltd. (NEEPCO) and the Government of Arunachal Pradesh. Govt. of India shall extend
Rs.458.79 crore as budgetary support for construction of roads, bridges and associated transmission line
under enabling infrastructure besides Central Financial Assistance of Rs.436.13 crore towards equity share
of the State. The state would be benefitted from 12% free power and another 1% towards Local Area
Development Fund (LADF) besides significant infrastructure improvement and socio-economic
development of the region.

The Project is in line with the aims and objectives of Aatmanirbhar Bharat Abhiyan, would provide various
benefits to local suppliers/enterprises/MSMEs including direct and indirect employment opportunities.

There will be significant improvement in infrastructure, including the development of around 32.88
kilometres of roads and bridges, for the project which shall be mostly available for local use. The district
will also benefit from the construction of essential infrastructure such as hospitals, schools, marketplaces,
playgrounds, etc. to be financed from dedicated project funds of Rs.20 crore. Local populace shall also be
benefitted from many sorts of compensations, employment and CSR activities.

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