Rs 8,146.21 crore project: Cabinet approves Investment Proposal for construction of 700 MW Tato-II Hydro Electric Project in Shi Yomi District of Arunachal Pradesh

DSIJ Intelligence-1 / 15 Aug 2025/ Categories: Mindshare, Trending

The stock is up by 16.3 per cent from its 52-week low of Rs 292.70 per share and has given multibagger returns of 285 per cent in 5 years.

The Cabinet Committee on Economic Affairs has approved an investment of Rs 8,146.21 crore for the construction of the 700 MW (4 x 175 MW) Tato-II Hydro Electric Project (HEP) in Shi Yomi District, Arunachal Pradesh. This project, with an estimated completion period of 72 months, is expected to produce 2738.06 MU of energy. It will be implemented through a Joint Venture Company between North Eastern Electric Power Corporation Ltd. (NEEPCO) and the Government of Arunachal Pradesh. The Government of India will provide Rs 458.79 crore as budgetary support for enabling infrastructure (roads, bridges, and transmission lines) and Rs 436.13 crore as Central Financial Assistance towards the state's equity share.

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The project offers significant benefits to Arunachal Pradesh, including 12 per cent free power and an additional 1 per cent towards the Local Area Development Fund (LADF). It aligns with the Aatmanirbhar Bharat Abhiyan, promoting local suppliers, enterprises, and MSMEs, and creating direct and indirect employment opportunities. Infrastructure improvements include the development of approximately 32.88 kilometres of roads and bridges. Additionally, Rs 20 crore from dedicated project funds will finance essential infrastructure like hospitals, schools, marketplaces, and playgrounds, further benefiting the local populace through compensation, employment, and CSR activities.

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About the Company

NTPC Ltd., including its subsidiaries, associates, and Joint Ventures, primarily focuses on the generation and sale of bulk power to State power utilities, while also diversifying its operations into consultancy, project management, energy trading, oil and gas exploration, and coal mining. In line with its clean energy objectives, NTPC is now venturing into the nuclear energy sector, having established ASHVINI, a joint venture with Nuclear Power Corporation of India Ltd., specifically for the development of nuclear power projects.

The President of India owns the majority of the stake (51.10 per cent). Talking about the financials, NTPC Ltd has a market cap of over Rs 3 lakh crore and reported positive numbers in its financial results (Q1FY26 & FY25). The company has been maintaining a healthy dividend payout of 37.4 per cent. The stock has a PE of 14x whereas the sectoral PE is 39x with an ROE of 12 per cent and an ROCE of 10 per cent. The stock is up by 16.3 per cent from its 52-week low of Rs 292.70 per share and has given multibagger returns of 285 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.