Cabinet Approves Over Rs 40,000 Crore Investment In Two Hydropower Projects In Arunachal Pradesh

(MENAFN- KNN India) Itanagar, Apr 9 (KNN) The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved investment proposals exceeding Rs 40,000 crore for the construction of two major hydropower projects in Arunachal Pradesh, aimed at strengthening regional power infrastructure and supporting national grid stability.

The Cabinet cleared an investment of Rs 14,105.83 crore for the 1200 MW Kalai-II Hydro Electric Project on the Lohit river in Anjaw district. The project, with an installed capacity of 1200 MW (6x190 MW and 1x60 MW), is expected to generate 4,852.95 million units (MU) of electricity annually and is scheduled for completion within 78 months.

The Kalai-II project will be implemented through a joint venture between THDC India Limited and the Government of Arunachal Pradesh. The Centre will provide Rs 599.88 crore as budgetary support for enabling infrastructure, including roads, bridges and transmission lines, along with Rs 750 crore as central financial assistance towards the state's equity share.

As the first hydropower project in the Lohit basin, it is expected to improve power supply reliability, assist in peak demand management and contribute to grid balancing.

In a separate decision, the Cabinet also approved an investment of Rs 26,069.50 crore for the 1720 MW Kamala Hydro Electric Project, to be developed across Kamle, Kra Daadi and Kurung Kumey districts. The project, with an installed capacity of 1720 MW (8x210 MW and 1x40 MW), is projected to generate 6,870 MU of electricity annually and is expected to be completed within 96 months.

The Kamala project will be executed through a joint venture between NHPC Limited and the state government. The Union government will extend Rs 4,743.98 crore as budgetary support for the flood moderation component and Rs 1,340 crore for enabling infrastructure, in addition to Rs 750 crore as equity assistance for the state.

Both projects are expected to deliver multiple benefits, including improved power availability, enhanced grid stability and reduced dependence on conventional energy sources. The Kamala project will also provide flood moderation benefits in the Brahmaputra basin.

Under the approved framework, the state will receive 12 per cent free power from both projects, along with an additional 1 per cent allocated to a Local Area Development Fund (LADF). The initiatives are also expected to generate socio-economic benefits, including employment opportunities, compensation support and corporate social responsibility (CSR) interventions for local communities.

Infrastructure development forms a key component of both projects. The Kalai-II project will involve the construction of around 29 km of roads and bridges in Anjaw and adjoining districts, while the Kamala project will lead to the development of approximately 196 km of such infrastructure across the project districts. Additional facilities, including hospitals, schools and marketplaces, are also planned under dedicated project funding.

The projects are part of a broader push to harness hydropower potential in the Northeast. Other major projects under development in the region include the Subansiri Lower (2000 MW), Dibang Multipurpose (2880 MW) and Etalin (3097 MW) projects, which are expected to further augment power capacity and contribute to regional development.

(KNN Bureau)

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