NEW DELHI, 8 Apr: The Union Cabinet Committee on Economic Affairs has approved major investments for two hydroelectric projects in Arunachal Pradesh, together amounting to over Rs. 40,000 crore, aimed at boosting power generation and strengthening infrastructure in the region.
The Cabinet cleared Rs. 26,069.50 crore for the 1720 MW Kamala Hydro Electric Project (HEP), to be constructed across Kamle, Kra Daadi, and Kurung Kumey districts, with an estimated completion period of 96 months. The project will comprise eight units of 210 MW each and one unit of 40 MW, generating 6870 million units (MU) of electricity annually.
The Kamala project will be developed through a joint venture between NHPC Limited and the government of Arunachal Pradesh. The Centre will provide Rs. 4,743.98 crore for flood moderation, Rs. 1,340 crore for enabling infrastructure including roads, bridges and transmission systems, and Rs. 750 crore as central financial assistance for the state’s equity share. Arunachal Pradesh will receive 12% free power, along with an additional 1% for the Local Area Development Fund.
In a separate decision, the Cabinet also approved Rs.14,105.83 crore for the 1200 MW Kalai-II Hydro Electric Project on the Lohit river in Anjaw district, to be completed in 78 months. The project, comprising six units of 190 MW and one unit of 60 MW, is expected to generate 4852.95 MU annually.
Kalai-II will be implemented through a joint venture between THDC India Limited and the government of Arunachal Pradesh. The Centre will extend Rs. 599.88 crore towards enabling infrastructure and Rs. 750 crore as central financial assistance for the state’s equity share.
The Kalai-II project, the first in the Lohit Basin, is expected to strengthen power supply in the state, support peak demand management, and help balance the national grid.
The approvals are part of a broader push to expand hydropower capacity in the region. NHPC is already developing several major projects, including the Subansiri Lower (2000 MW), Dibang Multipurpose (2880 MW), and Etalin (3097 MW) projects. The Subansiri Lower project has commissioned 750 MW so far, with the remaining capacity expected to be operational by December 2026. (With inputs from PIB)
