Cabinet approves Rs 40,000 cr for Kamala, Kalai-II hydro projects in Arunachal Pradesh

The Union Cabinet on Wednesday approved investments totalling Rs 40,150 crore for the construction of two major hydropower projects in Arunachal Pradesh, as the government accelerates development of renewable energy and regional infrastructure. The Kamala Hydro Electric Project (1,720 MW) will be built across Kamle, Kra Daadi, and Kurung Kumey districts through a joint venture between state-owned NHPC Ltd and the state government, with a planned completion period of eight years. ''The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, has approved investment of Rs 26,069.50 crore for construction of Kamala Hydro Electric Project (HEP) in Kamle, Kra Daadi & Kurung Kumey districts of Arunachal Pradesh,'' an official statement said, adding the estimated completion period for the project is 96 months. The plant is expected to generate about 6,870 million units of electricity annually, supporting peak demand management, national grid balancing, and flood moderation in the Brahmaputra basin. Separately, the Kalai-II Hydro Electric Project (1,200 MW) on the Lohit River in Anjaw district will be implemented via a joint venture between THDC India Limited and the Arunachal Pradesh government, with a target completion in 78 months. The CCEA ''approved investment of Rs 14,105.83 crore for construction of Kalai-II Hydro Electric Project (HEP) on Lohit river in Anjaw district of Arunachal Pradesh. The estimated completion period for the project is 78 months,'' it said. Once operational, it is expected to generate around 4,853 million units annually, strengthening power supply in the region and contributing to grid stability. 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. 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. While the Kalai-II will have six units of 190 MW each and one unit of 60 MW, the Kamala project will have 8 units of 210 MW each and one unit of 40 MW. ''There will be significant improvement in the infrastructure in Kamle, Kra Daadi & Kurung Kumey Districts of Arunachal Pradesh, including the development of around 196 kms of roads and bridges, for the project which shall be mostly available for local use,'' the statement said. 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 benefited from compensations, employment and CSR activities. Besides 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 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. ''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. Local populace shall also be benefited from many sorts of compensations, employment and CSR activities,'' the statement added.