New Delhi, Aug. 13 -- The Union cabinet chaired by Prime Minister Narendra Modi has approved Rs.8146.21 crore for a 700 MW hydroelectric project, Tato-II, in Arunachal Pradesh's Shi Yomi district, a move that comes weeks after China began construction of what is set to be the world's largest river dam on the upper reaches of the Brahmaputra river. The project will be implemented by a joint venture between the North Eastern Electric Power Corporation Ltd, a central public-sector company, and the state government. It will take an estimated six years to build, a statement said. The Centre will give Rs.458.79 crore for constructing roads, bridges and transmission lines, apart from assistance of Rs.436.13 crore towards equity share of the state. Arunachal Pradesh's cabinet had in May approved five mega hydropower projects in Shi Yomi, which borders China, towards the middle northern part. The five projects - Heo, Hirong, Naying, Tato I, and Tato II - would have a capacity of 2,626 megawatts of electricity. "On behalf of the people of Arunachal Pradesh, I convey our heartfelt gratitude to Hon'ble PM Shri Narendra Modi ji for approving the 700 MW Tato-II Hydroelectric Project with an investment of Rs.8146.21 crore in Shi Yomi district," Arunachal chief minister Pema Khandu said in a Facebook post soon after the Centre's decision. The state government has tasked a panel with modifying the State Hydro Power Policy, 2008, as well as the Local Area Development Fund Guidelines, 2022 to ramp up hydropower projects. About 49% of India's hydropower potential is said to be in Arunachal Pradesh. Last month, Chinese Premier Li Qiang presided over a ceremony marking the start of construction on the $167-billion dam on Yarlung Tsangpo river in Tibet, according to reports in China's state-run media. The Motuo hydropower station is set to overtake the Three Gorges dam as the world's largest, sparking concerns in India over its impact on the Brahmaputra. The Tato-II project would benefit the state by yielding 12% free power and another one per cent towards Local Area Development Fund, Union minister Ashwini Vaishnaw said....