Cabinet Approves ₹40,175 Cr Hydropower Boost in Arunachal Pradesh; 2920 MW Kamala & Kalai-II Projects Cleared
NHPC Limited will develop the Kamala project, the Kalai project will be implemented through a JV between THDC India Limited and the Govt. of Arunachal Pradesh
In a significant move to strengthen India’s renewable energy capacity and boost infrastructure in the Northeast, the Cabinet Committee on Economic Affairs (CCEA), chaired by Narendra Modi, has approved two major hydropower projects in Arunachal Pradesh with a combined investment of over ₹40,000 crore.
The Cabinet has cleared an investment of ₹26,069.50 crore for the Kamala Hydro Electric Project (HEP) to be developed across Kamle, Kra Daadi, and Kurung Kumey districts.
- Developer: NHPC Limited (in JV with Govt. of Arunachal Pradesh)
- Capacity: 1720 MW (8×210 MW + 1×40 MW)
- Generation: 6870 MU annually
- Timeline: 96 months
Key Benefits
- Strengthens power supply in Arunachal Pradesh
- Supports peak demand management and national grid balancing
- Provides flood moderation in the Brahmaputra basin
- Boosts infrastructure: ~196 km of roads and bridges
- Social infrastructure: hospitals, schools, marketplaces
Financial Support
- ₹4,743.98 crore for flood moderation
- ₹1,340 crore for enabling infrastructure
- ₹750 crore as Central Financial Assistance
Local Benefits
- 12% free power to the state
- 1% revenue for Local Area Development Fund (LADF)
- Employment, compensation, and CSR initiatives
1200 MW Kalai-II Hydro Electric Project Approved at ₹14,105.83 Crore
The Cabinet also approved the Kalai-II Hydro Electric Project (HEP) on the Lohit River in Anjaw district.
- Developer: JV between THDC India Limited and Govt. of Arunachal Pradesh
- Capacity: 1200 MW (6×190 MW + 1×60 MW)
- Generation: 4852.95 MU annually
- Timeline: 78 months
Strategic Importance
- First major hydro project in the Lohit Basin
- Enhances regional power reliability
- Supports grid stability and peak load management
Infrastructure & Support
- ₹599.88 crore for roads, bridges, transmission
- ₹750 crore equity support from Centre
- ~29 km of infrastructure development
Local Gains
- 12% free power + 1% LADF
- Jobs, compensation, CSR outreach
Arunachal Emerging as India’s Hydropower Hub
Alongside these approvals, Arunachal Pradesh is witnessing rapid hydropower expansion led by NHPC Limited:
- Subansiri Lower (2000 MW) – 750 MW already commissioned; full completion expected by Dec 2026
- Dibang Multipurpose (2880 MW) – under construction
- Etalin (3097 MW) – planned
These projects collectively reinforce India’s transition to clean energy while accelerating regional development.
Conclusion
The approval of Kamala and Kalai-II projects marks a transformative step toward energy security, sustainable development, and infrastructure growth in the Northeast. With strong central support and PSU-led execution, Arunachal Pradesh is poised to become a cornerstone of India’s hydropower capacity.
