"The union finance ministry last month gave its endorsement to provide necessary funding for the 210 MW capacity Tuivai hydro-electric power plant," an official of the Mizoram power and electricity department said.
"The biggest ever power project in Mizoram would be set up at a cost of Rs.1,750.60 crore on the banks of Tuivai river in Champhai district in the eastern part of the state," he said.
The project would be executed on the public-private partnership (PPP) mode.
Seven private companies have been shortlisted, after applications for requests for proposals were invited in September 2011.
According to an official document of the Mizoram government, the Tuivai project, conceptualised in 1995, will have a 155-metre dam across the Tuivai river to generate power.
The official said that this power project, to be commissioned within the next five years, would be the first of any projects in Mizoram requiring no compensation for takeover of land.
He said the necessary environment clearance for the project had also been obtained from the union ministry of environment and forests.
The Mizoram government is also setting up another 60 MW-capacity Tuirial hydro-electric project at Bilkhawtlir village in Kolosib district, at a cost of Rs.900 crore.
Bordering Myanmar and Bangladesh, Mizoram requires 120MW of power during summer, against a supply of 80 MW by the thermal and mini hydel projects of the North Eastern Electric Power Corporation and National Thermal Power Corporation in the northeast region.