₹26,070 Crore Boost: Cabinet Greenlights Massive 1720 MW Kamala Hydro Project for Arunachal Pradesh

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, has given the go-ahead for a major infrastructure leap in Arunachal Pradesh. An investment proposal worth Rs.26,069.50 crore has been approved for the construction of the 1720 MW Kamala Hydro Electric Project. This significant development is slated to bolster the energy security and infrastructure profile of the region.

Key Details of the Kamala Hydro Electric Project​

The Kamala HEP boasts an installed capacity of 1720 MW, structured as 8 x 210 MW and 1 x 40 MW units. Upon completion, the project is projected to generate an impressive 6870 MU of energy. The estimated timeline for completing the construction phase is set at 96 months.

This power infusion is poised to significantly strengthen the power supply position within Arunachal Pradesh. It will aid in managing peak demand fluctuations and contribute substantially to the balancing of the national grid. Furthermore, the project promises valuable flood moderation benefits across the Brahmaputra valley region.

Financial Support and State Benefits Assured​

The implementation of the Kamala HEP will operate via a Joint Venture Company involving NHPC Limited and the Government of Arunachal Pradesh. The central government support is structured across several components.

The Government of India will extend Rs.4743.98 crore as budgetary support specifically for the flood moderation component. Additionally, Rs.1340 crore is allocated as budgetary support for enabling infrastructure, covering roads, bridges, and associated transmission systems. Central Financial Assistance of Rs.750 crore will be provided towards the State’s equity share.

In return for the development, the state is slated to receive 12% free power. An additional 1% will be earmarked for the Local Area Development Fund (LADF). These power benefits are complemented by significant socio-economic uplifts for the entire region.

Transforming Local Infrastructure and Livelihoods​

The project's scope extends far beyond energy generation, promising a major overhaul of local connectivity. There will be significant infrastructure improvement across the Kamle, Kra Daadi, and Kurung Kumey Districts.

This includes the development of approximately 196 kms of roads and bridges, most of which will be accessible for local community use. The dedicated project funds, amounting to Rs.8 crore, will finance the construction of essential amenities such as hospitals, schools, and marketplaces.

Local populace will also stand to benefit through job creation, direct compensations, and Corporate Social Responsibility (CSR) activities linked to the project lifecycle.

Broader Hydropower Landscape in Arunachal Pradesh​

The development of Kamala HEP is part of a larger, ambitious push for hydropower generation in the region. NHPC Limited is developing three other major projects across Arunachal Pradesh and Assam.

These include the Subansiri Lower HEP (2000 MW), the Dibang Multipurpose project (2880 MW), and the Etalin HEP (3097 MW). The Subansiri Lower HEP is already advanced, with 750 MW commissioned and the remaining capacity expected by December 2026.

Collectively, these planned projects ensure substantial support for the host states, guaranteeing 12% free power and supporting local development through a 1% Local Area Development Fund derived from project revenues.