Guwahati: In a major push for hydropower expansion in the Northeast, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved two large hydroelectric projects in Arunachal Pradesh with a combined investment exceeding ₹40,000 crore.
The approvals cover the 1,720 MW Kamala Hydro Electric Project and the 1,200 MW Kalai-II Hydro Electric Project, marking a significant step towards strengthening the region’s role in India’s energy transition and grid stability.
The twin approvals underline the Centre’s strategy to position Arunachal Pradesh as a major hydropower hub, leveraging its vast river systems to support India’s growing energy demand while boosting infrastructure and economic activity in one of the country’s most remote regions.
The ₹26,069.50 crore Kamala Hydro Electric Project will be constructed across Kamle, Kra Daadi and Kurung Kumey districts over an estimated period of 96 months. With an installed capacity of 1,720 MW, the project is expected to generate around 6,870 million units (MU) of electricity annually.
Beyond power generation, the project is designed to aid peak demand management, contribute to national grid balancing, and provide flood moderation benefits in the Brahmaputra valley.
The project will be implemented through a joint venture between NHPC Limited and the Arunachal Pradesh government. The Centre will provide ₹4,743.98 crore for flood moderation and ₹1,340 crore for enabling infrastructure, along with ₹750 crore as equity support to the state.
The state will receive 12% free power, along with an additional 1% earmarked for the Local Area Development Fund (LADF).
The Cabinet has also approved the ₹14,105.83 crore Kalai-II Hydro Electric Project on the Lohit river in Anjaw district, to be completed in 78 months.
With a capacity of 1,200 MW, the project is expected to generate about 4,852.95 MU of electricity annually. It will be the first major hydro project in the Lohit basin, aimed at strengthening power supply, managing peak demand, and supporting grid stability.
The project will be developed through a joint venture between THDC India Limited and the state government. The Centre will extend ₹599.88 crore for enabling infrastructure and ₹750 crore as equity support.
Both projects are expected to trigger significant infrastructure development in remote districts, including the construction of nearly 196 km of roads and bridges under the Kamala project and about 29 km under Kalai-II, most of which will benefit local communities.
Additional investments will go into social infrastructure such as hospitals, schools and marketplaces, alongside employment generation, compensation packages and CSR initiatives.
The new approvals come amid a broader expansion of hydropower projects in the state led by NHPC. Key projects include the 2,000 MW Subansiri Lower, the 2,880 MW Dibang Multipurpose Project, and the proposed 3,097 MW Etalin project.
The Subansiri Lower project is already at an advanced stage, with 750 MW commissioned and the remaining capacity expected by December 2026.
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