New Delhi, April 8: The Union Cabinet has approved two major hydropower projects in Arunachal Pradesh with a combined investment of over ₹40,000 crore, aimed at boosting electricity generation, strengthening infrastructure and promoting regional development.
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The Cabinet cleared the Kamala Hydro Electric Project, a 1,720 MW project spanning Kamle District, Kra Daadi District, and Kurung Kumey District, at an estimated cost of ₹26,069.50 crore. The project is expected to generate about 6,870 million units (MU) of electricity annually.
In a separate decision, the Centre also approved the Kalai-II Hydro Electric Project, a 1,200 MW project in Anjaw District, with a total outlay of ₹14,105.83 crore. The project will produce around 4,852.95 MU of electricity annually.
Both projects will be implemented as joint ventures between central public sector undertakings and the state government. The Kamala project will be developed by NHPC Limited, while the Kalai-II project will be executed by THDC India Limited, with financial support from the Government of India.
Chief Minister Pema Khandu expressed gratitude to Prime Minister Narendra Modi for approving the projects. Khandu said the 1,200 MW Kalai-II project on the Lohit River would strengthen power supply, support grid stability and bring infrastructure, employment and development to the region.
He also thanked the Prime Minister for approving the Kamala project, noting that the 1,720 MW hydropower plant would enhance India’s energy security while improving livelihoods and infrastructure in remote parts of Arunachal Pradesh.
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Officials said the projects will significantly strengthen power supply in the state, help manage peak electricity demand and contribute to national grid stability. The Kamala project will also provide flood moderation benefits in the Brahmaputra Valley.
Infrastructure development will form a key component of the projects. Around 196 km of roads and bridges will be constructed under the Kamala project, while the Kalai-II project will include approximately 29 km of roads and bridges, creating employment opportunities in remote areas.
Arunachal Pradesh will also receive 12 percent free power from both projects, along with an additional 1 percent earmarked for the Local Area Development Fund (LADF), officials said.
