Modi’s Mega-Hydro Move: ₹40K Cr for Arunachal Pradesh

The Cabinet Committee on Economic Affairs (CCEA), chaired by Narendra Modi, has approved an investment of ₹40,175.33 crore for two major hydropower projects in Arunachal Pradesh.

The projects include the 1,720 MW Kamala Hydro Electric Project (₹26,069.50 crore) and the 1,200 MW Kalai-II Hydro Electric Project (₹14,105.83 crore).

The Kamala project will be developed across Kamle, Kra Daadi, and Kurung Kumey districts, with a completion timeline of 96 months. It will have an installed capacity of 1,720 MW and is expected to generate 6,870 million units (MU) of electricity annually.

The Kalai-II project will be built on the Lohit River in Anjaw district, with a timeline of 78 months. It will have a capacity of 1,200 MW and is projected to produce 4,852.95 MU annually.

Both projects will be implemented through joint ventures with state participation. The Kamala project will be executed by NHPC Limited, while the Kalai-II project will be handled by THDC India Limited.

The central government will provide ₹4,743.98 crore for flood control and ₹1,340 crore for infrastructure under the Kamala project, along with ₹750 crore towards the state’s equity. For Kalai-II, ₹599.88 crore will be allocated for infrastructure and ₹750 crore for equity support.

These projects aim to enhance power supply in Arunachal Pradesh, help meet peak electricity demand, and support grid stability at the national level. The Kamala project will also aid in flood management in the Brahmaputra River basin.

The state will receive 12% free power from both projects, plus an additional 1% dedicated to the Local Area Development Fund (LADF).

Infrastructure development under the Kamala project includes around 196 km of roads and bridges, along with healthcare, education, and market facilities funded through dedicated allocations. The Kalai-II project will add about 29 km of roads and bridges in Namsai and Anjaw districts.

Local communities are expected to benefit through compensation, employment opportunities, and corporate social responsibility initiatives.

Other ongoing hydropower projects by NHPC in the region include Subansiri Lower (2,000 MW), Dibang Multipurpose (2,880 MW), and Etalin (3,097 MW). Of these, Subansiri Lower has already commissioned 750 MW, with full capacity expected by December 2026.

News by Rahul Yelligetti.