New Delhi, April 8: In a major boost to Arunachal Pradesh’s infrastructure and energy sector, the Union Cabinet has approved two large hydropower projects with a combined investment exceeding ₹40,000 crore. The projects are expected to significantly enhance electricity generation, improve regional connectivity, create employment opportunities, and contribute to India’s long-term energy security.
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The Cabinet has approved the 1,720 MW Kamala Hydro Electric Project, which will be developed across Kamle, Kra Daadi, and Kurung Kumey districts of Arunachal Pradesh. The project, estimated to cost ₹26,069.50 crore, is expected to generate approximately 6,870 million units (MU) of electricity annually. The project will be implemented by NHPC Limited in partnership with the Government of Arunachal Pradesh.
In a separate approval, the Centre cleared the 1,200 MW Kalai-II Hydro Electric Project in Anjaw district at an estimated cost of ₹14,105.83 crore. The project is expected to generate around 4,852.95 MU of electricity every year and will be executed by THDC India Limited as a joint venture with the state government, with financial assistance from the Government of India.
Chief Minister Pema Khandu welcomed the Cabinet’s decision and expressed gratitude to Prime Minister Narendra Modi for approving the projects. He said the Kalai-II project on the Lohit River would not only strengthen power generation and support grid stability but also accelerate infrastructure development and create employment opportunities in the region.
Khandu also highlighted the significance of the Kamala Hydro Electric Project, stating that it would contribute substantially to India's growing energy needs while improving livelihoods and connectivity in some of Arunachal Pradesh’s most remote districts.
Officials said both projects would strengthen the state’s power infrastructure, help meet peak electricity demand, and improve the stability of the national power grid. The Kamala project is also expected to provide flood moderation benefits in the Brahmaputra Valley, offering additional protection to downstream areas.
Infrastructure development forms a key component of both projects. Under the Kamala project, approximately 196 kilometres of roads and bridges will be constructed, while the Kalai-II project will include around 29 kilometres of roads and bridges. These works are expected to improve accessibility in remote areas and generate substantial employment during the construction phase.
As part of the benefit-sharing arrangement, Arunachal Pradesh will receive 12 percent free power from both projects. Additionally, 1 percent of power generation revenue will be allocated to the Local Area Development Fund (LADF), ensuring direct benefits for communities living in project-affected areas.
The approval of these two mega hydropower projects marks a significant milestone in Arunachal Pradesh’s development journey, reinforcing its role as a key contributor to India’s renewable energy future while bringing economic growth and infrastructure development to the frontier state.
