Arunachal Pradesh to Get Two Hydropower Projects Worth ₹40,175 Crore After Cabinet Nod.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on recently approved a total investment of ₹40,175.33 crore for the construction of two major hydropower projects in Arunachal Pradesh.

The approvals include the 1,720 MW Kamala Hydro Electric Project (HEP), with an outlay of ₹26,069.50 crore, and the 1,200 MW Kalai-II Hydro Electric Project, with an outlay of ₹14,105.83 crore.

According to the CCEA statement, the Kamala HEP 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 1,720 MW (8 × 210 MW and 1 × 40 MW) and is expected to generate 6,870 million units (MU) of energy annually.

The Kalai-II project will be constructed on the Lohit River in Anjaw district, with a 78-month timeline. It will have a capacity of 1,200 MW (6 × 190 MW and 1 × 60 MW) and is projected to generate 4,852.95 MU annually.

Implementation will be through joint ventures with the state government: NHPC Ltd for Kamala HEP and THDC India Ltd for Kalai-II HEP.

The Government of India will provide ₹4,743.98 crore for flood moderation and ₹1,340 crore for enabling infrastructure under the Kamala project, along with ₹750 crore as central assistance towards the state’s equity share. For Kalai-II, ₹599.88 crore will be allocated for infrastructure, plus ₹750 crore for the state’s equity share.

Both projects are expected to strengthen Arunachal Pradesh’s power supply, aid in peak demand management, and contribute to balancing the national grid. The Kamala HEP will also offer flood moderation benefits in the Brahmaputra valley. The state will receive 12% free power from both projects, with an additional 1% earmarked for the Local Area Development Fund (LADF).

Infrastructure development under the Kamala project includes about 196 km of roads and bridges, along with hospitals, schools, and marketplaces through dedicated project funds of ₹8 crore. Kalai-II will develop around 29 km of roads and bridges in Namsai and Anjaw districts. Local communities are expected to benefit via compensation, employment, and corporate social responsibility initiatives.

Other hydropower projects by NHPC in the region include Subansiri Lower (2,000 MW), Dibang Multipurpose (2,880 MW), and Etalin (3,097 MW). Subansiri Lower has already commissioned 750 MW, with full capacity expected by December 2026.