Guwahati: The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved two major hydroelectric projects in Arunachal Pradesh with a combined investment of over Rs 40,000 crore, signalling a significant push to expand hydropower capacity in the Northeast.
The projects include the 1,720 MW Kamala Hydro Electric Project and the 1,200 MW Kalai-II Hydro Electric Project, aimed at strengthening energy generation, grid stability and peak demand management.
The Rs 26,069.50 crore Kamala project will be developed across Kamle, Kra Daadi and Kurung Kumey districts over an estimated 96 months. With an installed capacity of 1,720 MW, it is expected to generate around 6,870 million units (MU) of electricity annually. In addition to power generation, the project is designed to support flood moderation in the Brahmaputra valley and assist in balancing the national grid.
The project will be executed through a joint venture between NHPC Limited and the Arunachal Pradesh government. The Centre will provide Rs 4,743.98 crore for flood moderation, Rs 1,340 crore for enabling infrastructure and Rs 750 crore as equity support. The state will receive 12% free power, along with an additional 1% allocated to the Local Area Development Fund (LADF).
The Cabinet has also cleared the Rs 14,105.83 crore Kalai-II project on the Lohit river in Anjaw district, to be completed in 78 months. With an installed capacity of 1,200 MW, the project is expected to generate about 4,852.95 MU annually and will be the first major hydropower project in the Lohit basin.
The Kalai-II project will be implemented through a joint venture between THDC India Limited and the state government. The Centre will extend Rs 599.88 crore for enabling infrastructure and Rs 750 crore as equity support.
Both projects are expected to spur infrastructure development in remote areas. The Kamala project will involve the construction of nearly 196 km of roads and bridges, while the Kalai-II project will add about 29 km. Officials said the projects would also support the development of social infrastructure, including healthcare, education and local markets, alongside generating employment and providing compensation and CSR benefits.
The approvals are part of a broader effort to position Arunachal Pradesh as a key hydropower hub. Other major projects in the state include the 2,000 MW Subansiri Lower project, the 2,880 MW Dibang Multipurpose Project and the proposed 3,097 MW Etalin project.
The Subansiri Lower project is at an advanced stage, with 750 MW already commissioned and the remaining capacity expected to be completed by December 2026.