Union Cabinet Clears Mega Hydropower Projects to Boost Energy Output in Arunachal Pradesh
Kamala and Kalai-II projects to strengthen clean energy capacity, boost infrastructure, and improve grid stability
New Delhi, April 9: In a major push towards renewable energy expansion, the Union Cabinet chaired by Narendra Modi has approved two large scale hydropower projects in Arunachal Pradesh with a combined investment of ₹40,150 crore.
The flagship Kamala Hydro Electric Project, with a planned capacity of 1,720 MW, will be developed across the Kamle, Kra Daadi, and Kurung Kumey districts. The project will be executed through a joint venture between NHPC Ltd and the state government, with an estimated completion period of eight years. The Cabinet Committee on Economic Affairs has cleared an allocation of ₹26,069.50 crore for this initiative.
Once commissioned, the Kamala project is expected to generate around 6,870 million units of electricity annually. It will play a crucial role in meeting peak power demand, stabilizing the national grid, and aiding flood control in the Brahmaputra basin.
In addition, the Cabinet has sanctioned the 1,200 MW Kalai-II Hydro Electric Project on the Lohit River in Anjaw district. This project will be developed jointly by THDC India Limited and the Arunachal Pradesh government, with a projected completion timeline of 78 months. The approved investment for Kalai-II stands at ₹14,105.83 crore.
The Kalai-II project is expected to produce approximately 4,853 million units of electricity annually, further strengthening energy availability in the region and contributing to overall grid reliability.
To support these projects, the Centre will also provide budgetary assistance for essential infrastructure such as roads, bridges, and transmission systems, along with financial backing for the state’s equity participation.