Centre approves 2 hydropower projects worth ₹40,000 crore in Arunachal Pradesh

The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved investment proposals worth over ₹40,000 crore for two major hydropower projects in Arunachal Pradesh.

Chaired by Prime Minister Narendra Modi, the CCEA cleared ₹14,105.83 crore for the 1,200 MW Kalai-II Hydro Electric Project (HEP) in Anjaw district and ₹26,069.50 crore for the 1,720 MW Kamala Hydro Electric Project spread across Kamle, Kra Daadi and Kurung Kumey districts.

The Kalai-II project, to be developed on the Lohit river, will have an installed capacity of 1,200 MW and is expected to generate 4,852.95 million units (MU) of electricity annually.

It will be implemented through a joint venture between THDC India Ltd and the Arunachal Pradesh government, with an estimated completion timeline of 78 months.

“As the first hydro project in the Lohit Basin, it will strengthen power supply in the State, support in peak demand management, and contribute to balancing the national grid,” the government said in a statement.

The Centre will provide ₹599.88 crore as budgetary support for construction of roads, bridges and transmission lines, along with ₹750 crore as central financial assistance towards the state’s equity share.

The Kamala project, with a larger installed capacity of 1,720 MW, is estimated to generate 6,870 MU of electricity and will be implemented by a joint venture between NHPC Ltd and the state government. The project has a completion period of 96 months.

According to the government, the Kamala HEP will not only improve power supply and grid balancing but also offer flood moderation benefits in the Brahmaputra valley.

The Centre will extend ₹4,743.98 crore towards the flood moderation component and ₹1,340 crore for enabling infrastructure, besides ₹750 crore towards the state’s equity participation.

Both projects will entitle Arunachal Pradesh to 12% free power, along with an additional 1% earmarked for the Local Area Development Fund (LADF).

The Kalai-II project will lead to the development of about 29 km of roads and bridges, while the Kamala project will create nearly 196 km of such infrastructure, improving connectivity in remote regions.

The Kamala project will also fund essential facilities such as hospitals, schools and marketplaces.

The government said local communities will benefit through compensation, employment opportunities and corporate social responsibility initiatives.