Guwahati, Apr 8: In a significant push to hydropower development in the Northeast, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday cleared two major hydroelectric projects in Arunachal Pradesh involving a combined investment of over ₹40,000 crore.

The projects—1,720 MW Kamala Hydro Electric Project and 1,200 MW Kalai-II Hydro Electric Project—are expected to strengthen India’s power infrastructure while unlocking the hydro potential of the region’s river systems.

The twin clearances underline the Centre’s strategy to position Arunachal Pradesh as a key hydropower hub, boosting energy security, enabling grid stability, and accelerating infrastructure-led development in the Northeast.

The ₹26,069.50 crore Kamala Hydro Electric Project, spanning Kamle, Kra Daadi and Kurung Kumey districts, will be completed over 96 months. With a capacity of 1,720 MW, it is projected to generate around 6,870 MU annually.

Apart from power generation, the project will support peak demand management, help stabilise the national grid, and provide flood moderation benefits in the Brahmaputra valley.

It will be developed through a joint venture between NHPC Limited and the state government. The Centre will provide ₹4,743.98 crore for flood moderation, ₹1,340 crore for enabling infrastructure, and ₹750 crore as equity support.

The state will receive 12% free power, along with an additional 1% earmarked for the Local Area Development Fund (LADF).

The ₹14,105.83 crore Kalai-II Hydro Electric Project, to be built on the Lohit river in Anjaw district, marks the first major hydropower initiative in the basin.

With an installed capacity of 1,200 MW and an expected annual generation of 4,852.95 MU, the project is aimed at improving power supply, managing peak demand, and supporting grid balancing. It is expected to be completed in 78 months.

The project will be implemented through a joint venture between THDC India Limited and the Arunachal Pradesh government, with central support of ₹599.88 crore for infrastructure and ₹750 crore towards the state’s equity.

Both projects are set to significantly improve connectivity in remote regions. Nearly 196 km of roads and bridges will be developed under the Kamala project and about 29 km under Kalai-II, much of which will benefit local communities.

Investments will also support social infrastructure such as hospitals, schools, and marketplaces, alongside employment generation, compensation, and CSR initiatives.

The approvals come amid a broader expansion of hydropower projects in the state led by NHPC Limited, including the 2,000 MW Subansiri Lower, 2,880 MW Dibang Multipurpose, and the proposed 3,097 MW Etalin project.

The Subansiri Lower project is nearing completion, with 750 MW already commissioned and the remaining capacity expected by December 2026.

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