A total of seven companies have been shortlisted for the development of the project after the applications were called in earlier in September 2011.

An official of the Mizoram power and electricity department was quoted by IANS as saying that the federal finance ministry has given its endorsement to provide necessary funding for the Tuivai hydro-electric power plant in July 2013.

"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," added the official.

The hydro project, scheduled for commissioning within five years, would be the first project in the state requiring no compensation for takeover of land.

Mizoram government is also gearing up to establish a 60MW Tuirial hydro-electric project at Bilkhawtlir village in Kolosib district, with an investment of INR9bn ($139.9m).