08/04/2026
The Union Cabinet has approved two major hydropower projects in Arunachal Pradesh with a combined investment of over â‚ą40,000 crore, aimed at boosting energy generation, strengthening infrastructure and driving regional development.
The Cabinet cleared the 1,720 MW Kamala Hydro Electric Project across Kamle, Kra Daadi and Kurung Kumey districts at an estimated cost of â‚ą26,069.50 crore. The project is expected to generate 6,870 million units (MU) of electricity.
In a separate approval, the Centre sanctioned the 1,200 MW Kalai-II Hydro Electric Project in Anjaw district with a total outlay of â‚ą14,105.83 crore, which will produce 4,852.95 MU annually.
Both projects will be implemented as joint ventures between central public sector undertakings and the Arunachal Pradesh government, with financial backing from the Centre. While NHPC Ltd will develop the Kamala project, THDC India Ltd will execute the Kalai-II project.
Chief Minister Pema Khandu expressed gratitude to Prime Minister Narendra Modi for the approvals.
“Heartfelt gratitude to Hon’ble PM Shri Narendra Modi ji for approving the ₹14,105 crore Kalai-II Hydro Electric Project in Anjaw district. With a capacity of 1200 MW, this project on the Lohit River will strengthen power supply, support grid stability, and bring infrastructure, employment and development to the region,” Khandu said.
He also thanked the Prime Minister for clearing the Kamala project.
“Grateful to Hon’ble PM Shri Narendra Modi ji for approving the Kamala Hydro Electric Project worth ₹26,069 crore. This 1720 MW project will not only enhance India’s energy security but also drive infrastructure development, create jobs and improve livelihoods across Arunachal Pradesh, especially in remote districts,” he added.
Officials said the projects will significantly strengthen power supply in the state, support peak demand management and contribute to national grid stability.
The Kamala project will also provide flood moderation benefits in the Brahmaputra valley, while both projects are expected to boost regional connectivity through construction of roads, bridges and allied infrastructure.
Around 196 km of roads and bridges will be built under the Kamala project, while the Kalai-II project will involve approximately 29 km, generating employment opportunities in remote areas.
Arunachal Pradesh will receive 12% free power from both projects, along with an additional 1% earmarked for the Local Area Development Fund (LADF), officials said.
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