Cabinet approves two hydro projects in Arunachal Pradesh

• The Union Cabinet approved investments totalling Rs 40,150 crore for the construction of two major hydropower projects in Arunachal Pradesh on April 8.

Kamala Hydro Electric Project

• The Cabinet Committee on Economic Affairs approved investment of Rs 26,069.50 crore for construction of Kamala Hydro Electric Project (HEP) in Kamle, Kra Daadi and Kurung Kumey districts of Arunachal Pradesh.

• The project has an installed capacity of 1,720 MW (8 x 210 MW and 1 x 40 MW).

• It will be implemented through a joint venture company between NHPC Limited and the government of Arunachal Pradesh. 

• The estimated completion period for the project is 96 months.

• The plant is expected to generate about 6,870 million units (MU) of electricity annually, supporting peak demand management, national grid balancing, and flood moderation in the Brahmaputra basin.

• There will be significant improvement in the infrastructure in Kamle, Kra Daadi and Kurung Kumey districts, including the development of around 196 kms of roads and bridges, for the project which shall be mostly available for local use. 

• The district will also benefit from the construction of essential infrastructure such as hospitals, schools, marketplaces, etc to be financed from dedicated project funds of Rs 8 crore. 

• Local populace shall also be benefitted from compensations, employment and CSR activities.

Kalai-II Hydro Electric Project

• The Cabinet Committee on Economic Affairs approved investment of Rs 14,105.83 crore for construction of Kalai-II Hydro Electric Project on Lohit river in Anjaw district of Arunachal Pradesh. 

• The project with an installed capacity of 1,200 MW (6x190 MW and 1x60 MW) is expected to generate 4,852.95 MU of energy annually. 

• The estimated completion period for the project is 78 months.

• Once operational, it is expected to generate around 4,853 million units annually.

• As the first hydro project in the Lohit Basin, it will strengthen power supply in the state, support in peak demand management, and contribute to balancing the national grid.

• The Union government will provide budgetary support for enabling infrastructure, including roads, bridges, and transmission lines, alongside central financial assistance toward the states' equity shares.

• The project will be implemented through a joint venture company between THDC India Limited and the government of Arunachal Pradesh. 

• There will be significant improvement in infrastructure in Namsai and Anjaw District of Arunachal Pradesh, including the development of around 29 kilometres of roads and bridges, for the project which shall be mostly available for local use.

• Both projects allocate 12 per cent free power to host states, with an additional 1 per cent earmarked for Local Area Development Funds (LADF).

• Together, the initiatives are expected to spur socio-economic development in remote districts, with construction generating employment, boosting local infrastructure, and delivering long-term benefits such as hospitals, schools, and improved connectivity.

• These approvals complement other ongoing hydropower projects in Arunachal Pradesh, including the Subansiri Lower (2,000 MW), Dibang Multipurpose (2,880 MW), and Etalin (3,097 MW) projects, positioning the northeastern state as a key hub for India's renewable energy expansion and energy security strategy.

• Subansiri Lower HEP (2000 MW) is at an advanced stage, with 750 MW already commissioned, and the remaining capacity is expected to be commissioned by December 2026, while all projects will provide 12 per cent free power to the host states and support local development through a Local Area Development Fund equivalent to 1 per cent of project revenue.