New Delhi: The Union Cabinet on Wednesday approved investments totalling Rs 40,150 crore for the construction of two significant hydropower projects in Arunachal Pradesh, marking a major step toward renewable energy development and regional infrastructure enhancement.
The projects include the Kamala Hydro Electric Project (1,720 MW) and the Kalai-II Hydro Electric Project (1,200 MW). Both initiatives are expected to generate thousands of million units of electricity annually, improve grid stability, and contribute to socio-economic development in remote northeastern districts.
Kamala Hydro Electric Project: 1,720 MW
The Kamala HEP will be constructed across the Kamle, Kra Daadi, and Kurung Kumey districts through a joint venture between NHPC Limited and the Arunachal Pradesh government.
- Investment approved: Rs 26,069.50 crore
- Completion period: 96 months (8 years)
- Expected generation: 6,870 million units annually
- Units configuration: 8 units of 210 MW each + 1 unit of 40 MW
The project will support peak power demand management, national grid balancing, and flood moderation in the Brahmaputra basin. It will also include the development of 196 km of roads and bridges, hospitals, schools, and other essential infrastructure. A Local Area Development Fund (LADF) of 1% of the project revenue and 12% free power will be allocated to host districts.
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Kalai-II Hydro Electric Project: 1,200 MW
The Kalai-II HEP will be built on the Lohit River in Anjaw district via a joint venture between THDC India Limited and the Arunachal Pradesh government.
- Investment approved: Rs 14,105.83 crore
- Completion period: 78 months (6.5 years)
- Expected generation: 4,853 million units annually
- Units configuration: Six units of 190 MW each + one unit of 60 MW
This project aims to enhance regional power supply, support grid stability, and boost local infrastructure, including 29 km of roads and bridges, while providing employment, compensation, and CSR benefits to local communities.
Complementing Existing Hydropower Initiatives
These new approvals complement ongoing hydropower projects in Arunachal Pradesh, including:
- Subansiri Lower HEP (2,000 MW) – 750 MW already commissioned, full capacity expected by December 2026
- Dibang Multipurpose HEP (2,880 MW)
- Etalin HEP (3,097 MW)
All projects provide 12% free power to host states and contribute 1% of project revenue toward Local Area Development Funds, ensuring socio-economic benefits for local populations.
Strategic Impact
The Union government will support enabling infrastructure, such as transmission lines, roads, and bridges, alongside budgetary assistance for state equity participation. Once operational, the Kamala and Kalai-II projects are expected to strengthen India’s renewable energy portfolio, provide reliable electricity to the northeastern grid, and accelerate sustainable development in remote districts.
About NHPC Limited and THDC India Limited
NHPC Limited is a government-owned hydropower enterprise focused on planning, development, and operation of power projects across India.
THDC India Limited develops multipurpose hydroelectric and renewable energy projects and works in partnership with state governments to expand clean energy infrastructure.
