Arunachal Pradesh Tapped: ₹26,069 Crore Boost to 1720 MW Kamala Hydro Project

Cabinet Approves Massive ₹26,069 Crore Investment for Kamala Hydro Project​

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has sanctioned a substantial investment of ₹26,069.50 crore. This funding is designated for the construction of the Kamala Hydro Electric Project (HEP) in Arunachal Pradesh. The project spans the Kamle, Kra Daadi, and Kurung Kumey Districts.

The planned installation capacity for the Kamala HEP is 1720 MW. This capacity is structured as 8 units of 210 MW and 1 unit of 40 MW. The project is projected to generate an impressive 6870 MU of energy. The estimated completion period for the entire development cycle is set at 96 months.

Boosting Power Security and Regional Infrastructure​

The successful commissioning of the Kamala HEP is set to significantly strengthen the power supply position within Arunachal Pradesh. Furthermore, it is anticipated to aid in managing peak demand requirements for the state.

Beyond energy generation, the project promises contributions to national grid balancing. A key environmental benefit noted is the provision of flood moderation benefits within the Brahmaputra valley region.

Joint Venture Structure and Central Financial Assistance​

The execution of the Kamala HEP will be managed through a Joint Venture Company. This entity will be established between NHPC Limited and the Government of Arunachal Pradesh.

The Government of India is providing crucial budgetary support towards this initiative. This support includes ₹4743.98 crore dedicated for the flood moderation component. An additional ₹1340 crore is allocated for enabling infrastructure. This infrastructure funding covers the construction of roads, bridges, and associated transmission systems.

Central Financial Assistance of ₹750 crore is also earmarked to support the equity share of the State. As a direct benefit, the State will receive 12% free power. Additionally, 1% of the revenue will be earmarked for the Local Area Development Fund (LADF).

Socio-Economic Upliftment Across Three Districts​

The economic ripples of the project extend far beyond electricity generation. There will be a marked improvement in infrastructure across Kamle, Kra Daadi, and Kurung Kumey Districts.

The project scope includes the development of approximately 196 kms of roads and bridges, much of which will serve local populace needs. The district will also gain access to essential social infrastructure.

These benefits include the construction of hospitals, schools, and marketplaces. These amenities are set to be financed from a dedicated project fund amounting to ₹8 crore. Local people are also slated to benefit through compensations, employment generation, and Corporate Social Responsibility (CSR) activities.

Overview of NHPC's Broader Hydropower Push in Arunachal​

The focus on Kamala HEP is part of a larger commitment to hydropower development in the region. NHPC Limited is developing three other major projects.

These include Subansiri Lower (rated at 2000 MW), Dibang Multipurpose (rated at 2880 MW), and Etalin (rated at 3097 MW). Subansiri Lower HEP is reported to be at an advanced stage. Of this project, 750 MW is already commissioned. The remaining capacity is expected to be commissioned by December 2026.

All these major projects are set to provide 12% free power to the host states. They will also support local development through a Local Area Development Fund equivalent to 1% of project revenue.