New Delhi: The Union government on Wednesday cleared two major hydropower projects in Arunachal Pradesh, marking a significant push towards strengthening India’s renewable energy capacity and improving infrastructure in the northeastern region.
The approvals were granted by the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, for the construction of the 1,200 MW Kalai-II Hydro Electric Project and the 1,720 MW Kamala Hydro Electric Project. Together, the projects involve a combined investment of over Rs 40,000 crore and are expected to substantially enhance power generation while supporting regional development.
The Kalai-II project, to be built on the Lohit river in Anjaw district, entails an investment of Rs 14,105.83 crore and is scheduled for completion within 78 months, according to an official statement.
With an installed capacity of 1,200 MW, it is projected to generate nearly 4,853 million units of electricity annually. As the first hydropower project in the Lohit basin, it is expected to improve power availability in the state, assist in managing peak demand, and contribute to grid stability at the national level.
Implementation of the Kalai-II project will be undertaken through a joint venture between THDC India Limited and the Arunachal Pradesh government.
The Centre will provide budgetary support of Rs 599.88 crore for enabling infrastructure such as roads, bridges, and transmission lines, along with Rs 750 crore as central financial assistance towards the state’s equity share.
The project is also expected to drive local development, including the construction of around 29 kilometres of roads and bridges, and create employment opportunities alongside compensation and community welfare initiatives.
The larger Kamala Hydro Electric Project, spread across Kamle, Kra Daadi, and Kurung Kumey districts, has been approved at a cost of Rs 26,069.50 crore and is expected to be completed in 96 months. With a capacity of 1,720 MW, it is projected to generate about 6,870 million units of electricity.
Apart from strengthening the state’s power supply and aiding grid balancing, the project is also expected to provide flood moderation benefits in the Brahmaputra basin.
This project will be implemented through a joint venture between NHPC Limited and the state government. The Centre has committed Rs 4,743.98 crore towards the flood moderation component and Rs 1,340 crore for enabling infrastructure, in addition to Rs 750 crore as equity support for the state. Infrastructure development under the project will include nearly 196 kilometres of roads and bridges, along with essential public facilities such as hospitals, schools, and marketplaces, funded through dedicated project allocations.
Both projects will provide Arunachal Pradesh with 12% free power, along with an additional one per cent earmarked for the Local Area Development Fund, aimed at supporting community-level initiatives. Local populations are expected to benefit through employment, compensation packages, and corporate social responsibility programmes.
