The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday, 8 April, approved two major hydroelectric projects in Arunachal Pradesh with a combined investment of ₹40,175.33 crore.
The approvals include the 1720 MW Kamala Hydro Electric Project with an outlay of ₹26,069.50 crore and the 1200 MW Kalai-II Hydro Electric Project with an investment of ₹14,105.83 crore.
The Kamala Hydro Electric Project will be developed across Kamle, Kra Daadi and Kurung Kumey districts, with an estimated completion period of 96 months.
The project will have an installed capacity of 1720 MW and is expected to generate 6,870 million units of electricity annually.
The Kalai-II Hydro Electric Project, located on the Lohit river in Anjaw district, will have a capacity of 1200 MW and is expected to be completed within 78 months.
The project is estimated to generate 4,852.95 million units of electricity annually.
Both projects are expected to strengthen power supply in Arunachal Pradesh, support peak demand management and contribute to balancing the national grid.
The Kamala project will also provide flood moderation benefits in the Brahmaputra valley.
The Kamala project will be implemented through a joint venture between NHPC Limited and the Government of Arunachal Pradesh, while the Kalai-II project will be developed through a joint venture between THDC India Limited and the state government.
For Kamala hydro project, the Centre will provide ₹4,743.98 crore towards flood moderation and ₹1,340 crore for enabling infrastructure such as roads, bridges and transmission systems, along with ₹750 crore as central financial assistance towards the state’s equity share.
For Kalai-II, ₹599.88 crore will be provided as budgetary support for infrastructure including roads, bridges and transmission lines, along with ₹750 crore as central assistance for the state’s equity share.
Both projects will provide 12 per cent free power to the state and an additional 1 per cent will be allocated to the Local Area Development Fund (LADF).
Infrastructure development is a key component of both projects.
Around 196 Km of roads and bridges will be developed under the Kamala project, while approximately 29 Km of roads and bridges will be constructed under Kalai-II, most of which will be available for local use.
The Kamala project will also support the development of essential infrastructure such as hospitals, schools and marketplaces through dedicated project funds of ₹8 crore.
The government stated that local populations in the project areas will benefit through compensation, employment opportunities and corporate social responsibility initiatives linked to both projects.
Beside Kamala HEP, three major hydropower projects-Subansiri Lower (2000 MW), Dibang Multipurpose (2880 MW), and Etalin (3097 MW)-are being developed by NHPC Limited in Arunachal Pradesh and Assam.
Subansiri Lower HEP (2000 MW) is at an advanced stage with 750 MW already commissioned and 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.
