NEW DELHI, 9 Jan: The Public Investment Board (PIB) on Thursday approved an expenditure of Rs 26,069.50 crore for the proposed 1720 mw Kamala hydro project in Arunachal Pradesh, a source said.
The project will generate 6,869.92 mu of green energy annually on completion, thereby contributing to the Government of India’s energy transition initiatives and its net zero target by 2070, the source told PTI.
The Kamala hydroelectric project is a storage-based scheme with a flood moderation component, proposed on the Kamala river (a major tributary of the Subansiri river), located in Kamle, Kra Daadi and Kurung Kumey districts of Arunachal.
The project involves construction of a 216-metre high concrete gravity dam and an underground powerhouse with a scheduled completion period of eight years. In addition to power generation, the project also envisages to provide flood relief in the Brahmaputra valley.
The project will be implemented on build-own-operate-transfer (BOOT) basis through a joint venture with 74 percent equity with NHPC and 26 percent owned by Government of Arunachal.
The completion cost of the project is estimated at Rs 26,069.50 crore, including IDC and financing charges of Rs 4,815.64 crore.
The project is proposed to be financed with a debt-equity ratio of 70:30, supported by the Government of India grants for enabling infrastructure (Rs 1,340 crore) and flood moderation component (Rs 4,743.98 crore), along with 100 percent SGST reimbursement by the state government.
Considering these aspects, the levelised tariff of the project is Rs 5.97/unit. Key benefits from the project include flood moderation in the Brahmaputra basin, 12 percent free power to the state government, yielding about Rs 486 crore annually, contribution of Rs 40 crore per year to Local Area Development Fund (LADF).
The project will also lead to regional infrastructure development, and significant employment generation (about 300 direct jobs and 2,500 contract workers during peak construction period).
Besides, the state government will earn a first-year return of about Rs 127 crore on the Rs 750 crore central assistance (CFA) included in its 26 percent equity contribution.
The source said also that the power ministry has given in-principle approval for Rs 3,000-crore expenditure for testing facilities across the country. (PTI)
