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Cabinet clears ₹40,000 crore hydropower projects in Arunachal Pradesh

Cabinet approves Rs 40,000 crore investment in two hydropower projects in Arunachal Pradesh to boost power supply, support flood control and strengthen the national grid

hydropower plants

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Sudheer Pal Singh New Delhi

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The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday approved an investment of Rs 40,000 crore to set up two hydropower plants in Arunachal Pradesh.
 
This includes Rs 14,105.83 crore for the construction of the Kalai-II Hydro Electric Project (HEP) on the Lohit river in Anjaw district and Rs 26,069.50 crore for the construction of the Kamala HEP in Kamle, Kra Daadi and Kurung Kumey districts. The estimated completion periods for the two projects are 78 months and 96 months, respectively.
 
The Kalai-II project will be set up with an installed capacity of 1,200 MW and is expected to generate 4,852 million units (MUs) of power annually. As the first hydro project in the Lohit basin, it will strengthen power supply in the state, support peak demand management, and contribute to balancing the national grid.
 
 
"The project will be implemented through a joint venture company between THDC India Limited and the Government of Arunachal Pradesh. The Government of India shall extend Rs 599.88 crore as budgetary support for the construction of roads, bridges and associated transmission lines under enabling infrastructure, besides Central Financial Assistance of Rs 750 crore towards the state's equity share," CCEA said in a statement.
 
The Kamala HEP will be set up with an installed capacity of 1,720 MW and is expected to generate 6,870 MUs of energy. The power generated from the project, apart from strengthening the supply position in the state, will also provide flood moderation benefit in the Brahmaputra valley.
 
"In addition to Kamala HEP, other hydropower projects — Subansiri Lower (2,000 MW) and Dibang Multipurpose (2,880 MW) — are under construction, and Etalin (3,097 MW) is planned for development by NHPC Limited in Arunachal Pradesh," CCEA said.
 
The Kamala HEP will be implemented through a joint venture company between NHPC and the state government. The Centre will extend Rs 4,743.98 crore as budgetary support towards the flood moderation component and Rs 1,340 crore as budgetary support for enabling infrastructure, including the construction of roads, bridges and associated transmission systems, besides Central Financial Assistance of Rs 750 crore towards the state's equity share.

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First Published: Apr 08 2026 | 5:11 PM IST

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