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The Union Cabinet has approved an investment of INR 40,175.33 crore for the development of two major hydropower projects in Arunachal Pradesh, aimed at strengthening renewable energy capacity and regional infrastructure. Cleared in the past week by the Cabinet Committee on Economic Affairs, the projects include the 1,720 MW Kamala Hydro Electric Project and the 1,200 MW Kalai-II Hydro Electric Project, with a combined capacity of 2,920 MW. The Kamala project will be developed across multiple districts, while Kalai-II will be located on the Lohit river in Anjaw district. Both projects will be executed through joint ventures involving central public sector companies and the state government. The developments are expected to support grid stability, improve power availability and enable infrastructure expansion in the region.
The Union Cabinet has approved investment proposals worth INR 40,175.33 crore in the past week for the construction of two hydropower projects in Arunachal Pradesh, aimed at augmenting renewable energy capacity, strengthening regional infrastructure and supporting grid stability, as part of a broader push towards clean energy generation. Advertisement
The approvals, granted by the Cabinet Committee on Economic Affairs, cover the 1,720 MW Kamala Hydro Electric Project and the 1,200 MW Kalai-II Hydro Electric Project, together adding 2,920 MW of installed capacity. The Kamala project has been allocated an investment of INR 26,069.50 crore, while the Kalai-II project involves an outlay of INR 14,105.83 crore.
The Kamala Hydro Electric Project will be developed across Kamle, Kra Daadi and Kurung Kumey districts, with an estimated construction period of around 96 months. The project will comprise multiple generating units and is expected to produce approximately 6,870 million units of electricity annually. It will be implemented through a joint venture between NHPC Limited and the Government of Arunachal Pradesh.
In parallel, the Kalai-II Hydro Electric Project will be constructed on the Lohit river in Anjaw district, with a projected completion timeline of about 78 months. The project is expected to generate nearly 4,852.95 million units of electricity annually and will be executed through a joint venture between THDC India Limited and the state government.
The central government has committed budgetary support for both projects, including INR 4,743.98 crore for flood moderation and INR 1,340 crore for enabling infrastructure such as roads, bridges and transmission systems under the Kamala project. An additional INR 750 crore has been allocated as financial assistance towards the state's equity share. For the Kalai-II project, INR 599.88 crore will be provided for infrastructure development along with similar equity support of INR 750 crore.
Infrastructure development forms a key component of the projects, with the Kamala project expected to include approximately 196 km of roads and bridges, alongside social infrastructure such as hospitals, schools and marketplaces. The Kalai-II project will involve the construction of around 29 km of supporting infrastructure in the region.
Both projects will provide 12 per cent free power to Arunachal Pradesh, with an additional one per cent earmarked for the Local Area Development Fund. Authorities indicated that these provisions are intended to ensure local benefits, alongside employment generation, compensation mechanisms and corporate social responsibility initiatives for affected communities.
The projects are part of a broader hydropower development strategy in the northeastern region, where multiple large-scale projects are under construction or planning stages. The addition of new capacity is expected to support peak demand management and contribute to balancing the national power grid, while also strengthening infrastructure in relatively underdeveloped districts.
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