CCEA clears Rs 40,175 crore for two hydro projects in Arunachal Pradesh

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved investments totalling Rs 40,175.33 crore for two hydroelectric projects in Arunachal Pradesh. The projects will add 2,920 MW of capacity to the national grid and are positioned to support clean power generation and regional development.

The larger project, the 1,720 MW Kamala Hydroelectric Project, has been approved at an investment of Rs 26,069.50 crore. It will be developed across the Kamle, Kra Daadi, and Kurung Kumey districts through a joint venture between NHPC Limited (NHPC) and the Government of Arunachal Pradesh under a 70:30 debt-equity structure. The Central government will provide Rs 4,743.98 crore for flood moderation, Rs 1,340 crore for enabling infrastructure such as roads, bridges, and transmission systems, and Rs 750 crore toward the state’s equity share. The project is expected to generate 6,870 million units annually and contribute to flood management in the Brahmaputra valley. Completion is targeted within 96 months.

The second project, the 1,200 MW Kalai-II Hydroelectric Project, will be developed on the Lohit River in Anjaw district at an investment of Rs 14,105.83 crore. It will be executed by THDC India Limited (THDC) in partnership with the Arunachal Pradesh government. Central support includes Rs 750 crore for the state’s equity contribution and Rs 599.88 crore for associated infrastructure. The project, the first hydropower development in the Lohit Basin, is expected to generate 4,852.95 million units annually and is scheduled for completion in 78 months.

Both projects will provide 12% free power to Arunachal Pradesh, with an additional 1% allocated to a Local Area Development Fund (LADF) for community infrastructure. The Kamala project includes around 196 kilometres of roads and bridges, along with hospitals, schools, and markets funded through a dedicated Rs 8 crore project allocation. Kalai-II will add approximately 29 kilometres of local roads and bridges. The developments also include employment generation, compensation measures, and corporate social responsibility (CSR) initiatives for affected communities.

The approvals align with NHPC’s broader expansion in the northeast. The company is progressing work on the 2,000 MW Subansiri Lower project, of which 750 MW has been commissioned, with the remaining capacity expected by December 2026. It is also developing the 2,880 MW Dibang Multipurpose and 3,097 MW Etalin projects in Arunachal Pradesh.

Bhupender Gupta, Chairman and Managing Director of NHPC, stated that the approval of the Kamala project reflects continued government focus on clean energy. He added that the project is expected to enhance energy security, support grid stability, and contribute to socio-economic development in the region.

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