New Delhi/Itanagar, Apr 8: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved major investment proposals for two large hydropower projects in Arunachal Pradesh—marking a significant push towards energy security and infrastructure development in the Northeast.
The Cabinet approved an outlay of Rs 26,069.50 crore for the 1720 MW Kamala Hydro Electric Project (HEP) to be developed across Kamle, Kra Daadi, and Kurung Kumey districts. With an installed capacity of 8×210 MW and 1×40 MW, the project is expected to generate 6,870 million units (MU) of electricity annually and will be completed over a period of 96 months.
The Kamala Project will be implemented 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 and Rs 1,340 crore for enabling infrastructure, including roads, bridges, and transmission systems, along with Rs 750 crore as equity support.
In a separate approval, the Cabinet sanctioned Rs 14,105.83 crore for the construction of the 1200 MW Kalai-II Hydro Electric Project on the Lohit river in Anjaw district.
The project (6 x 190 MW & 1 x 60 MW) to be executed by a joint venture between THDC India Limited and the State Government, is expected to be completed within 78 months and generate 4,852.95 MU of power annually.
As the first hydro project in the Lohit Basin, the Kalai-II project will strengthen power supply in the State, support in peak demand management, and contribute to balancing the national grid.
The Centre will extend Rs 599.88 crore as budgetary support for construction of roads, bridges and associated transmission line under enabling infrastructure besides Central Financial Assistance of Rs 750 crore towards equity share of the State.
Both projects will provide 12% free power to the state and an additional 1% for the Local Area Development Fund (LADF), ensuring direct benefits to local communities.
Officials said the projects will significantly improve infrastructure in the region, including construction of nearly 196 km of roads and bridges under the Kamala project and around 29 km under Kalai-II. Additional facilities such as hospitals, schools, and marketplaces will also be developed.
Apart from strengthening power supply and supporting peak demand management, the projects are expected to contribute to national grid stability and provide flood moderation benefits in the Brahmaputra basin.
The initiatives are part of a broader hydropower push in the region, with projects like Subansiri Lower, Dibang Multipurpose, and Etalin also under development by the NHPC Limited.
The government said the projects will generate employment, boost local economies through compensation and CSR activities, and accelerate socio-economic development in remote districts of Arunachal Pradesh.