Cabinet clears two mega hydro projects worth ₹40,000 crore in Arunachal Pradesh

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday approved two major hydro-electric projects in Arunachal Pradesh with a combined investment of over ₹40,000 crore, aimed at boosting power generation, infrastructure, and regional development.

The Cabinet cleared ₹26,069.50 crore for the 1,720 MW Kamala Hydro Electric Project (HEP) to be developed across Kamle, Kra Daadi, and Kurung Kumey districts. The project, with an estimated completion period of 96 months, is expected to generate 6,870 MU of energy.

In addition, approval was granted for the ₹14,105.83 crore Kalai-II Hydro Electric Project (HEP), a 1,200 MW project on the Lohit river in Anjaw district. The project, the first in the Lohit Basin, is scheduled for completion within 78 months and is expected to generate 4,852.95 MU of energy annually.

Both projects are expected to significantly strengthen power supply in the state, support peak demand management, and contribute to balancing the national grid, while also offering flood moderation benefits in the Brahmaputra valley in the case of the Kamala project.

The Kamala HEP will be implemented through a joint venture between NHPC Limited and the Arunachal Pradesh government, while the Kalai-II project will be developed through a joint venture between THDC India Limited and the state government.

The government will provide substantial financial support for both projects. For the Kamala project, ₹4,743.98 crore has been allocated for flood moderation and ₹1,340 crore for enabling infrastructure such as roads, bridges, and transmission systems, along with ₹750 crore as central financial assistance towards the state’s equity share. For the Kalai-II project, ₹599.88 crore has been allocated for enabling infrastructure, in addition to ₹750 crore as central financial assistance.

Infrastructure development is a key component of both projects. The Kamala project will see the development of around 196 km of roads and bridges, along with additional facilities such as hospitals, schools, and marketplaces funded through dedicated project funds. The Kalai-II project will lead to the development of around 29 km of roads and bridges in Namsai and Anjaw districts.

The projects are also expected to generate employment, provide compensation, and support CSR activities for local communities. Arunachal Pradesh will receive 12 per cent free power from both projects, along with an additional 1 per cent allocated for the Local Area Development Fund (LADF).

Other hydropower projects in the state, including Subansiri Lower (2,000 MW) and Dibang Multipurpose (2,880 MW), are currently under construction, while the Etalin project (3,097 MW) is planned for development.

(This story was taken from syndicated feed and was only edited for style by Gujarat Samachar Digital team)