Itanagar, Jan 16 (PTI) The Arunachal Pradesh cabinet approved SGST reimbursement concessions for two hydropower projects to enhance their financial viability, a statement said on Thursday.

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

The projects will be implemented in joint ventures between the state government and CPSUs. The state government would hold a 26 per cent equity share in the joint venture for these projects, which entail a cumulative investment of around Rs 35,000 crore.

These projects are expected to generate close to Rs 470 crore in free power for the state and Rs 79 crore through local area development funds every year after commissioning.

They are part of the 13 stalled large projects, rejuvenated by the state government through the signing of MoAs with four CPSUs in 2023.

The state cabinet also took several key decisions for strengthening infrastructure, governance, and citizen service delivery across the state, the statement said.

It approved the policy for the restoration of terminated large hydropower projects under special circumstances.

The policy is aimed at reviving terminated large hydropower projects that achieved substantial progress at the site. This will help facilitate a development-focused environment through timely project restoration and promote investments and employment opportunities, the statement said.

The cabinet also decided to recommend to the Centre the proposal to set up a 100-seat medical college and a 420-bed hospital in Namsai under the aspirational district programme.

The project is planned under the public-private partnership (PPP) mode and aims to bridge the gap in healthcare services and medical education in the region. The total project cost is Rs 375 crore, the statement said.

The cabinet also approved the upgradation of 20 junior engineer (civil) posts in the hydropower development department to assistant surveyor of works (ASW) and assistant engineer (civil) posts to ensure proper manning of positions at the divisional and district levels, it said.

Approval was also given for the creation of 36 posts in the land management department, including one Group A post, 15 Group B posts and 20 Group C posts.

As many as 32 teaching and non-teaching posts were also approved by the cabinet for the Government Engineering College at Tezu in Lohit district. PTI UPL UPL SOM

SGST reimbursement relief for hydropower projects enhances viability through state-CPSU joint ventures and state equity participation. Approval of SGST reimbursement concessions was granted for two hydropower projects to improve financial viability via joint ventures between the state and CPSUs, with state equity participation; the projects involve substantial capital investment and are expected to provide recurring free power allocations and local area development funds. The cabinet also approved a restoration policy for terminated large hydropower projects with substantial site progress to facilitate timely revival and promote investment and employment.