Cabinet Clears Rs 40,000 Crore for Two Mega Hydro Projects in Arunachal Pradesh

The Union Cabinet has approved investment proposals worth around Rs 40,000 crore for the construction of two major hydroelectric projects in Arunachal Pradesh, marking a significant push for power generation and infrastructure development in the northeast.

Both projects will be implemented through joint ventures between central public sector undertakings and the Arunachal Pradesh government.

The Cabinet cleared an investment of Rs 26,069 crore for the 1,720 MW Kamala Hydroelectric Project, located in Kamle across the Kra Daadi and Kurung Kumey districts.

The project will be developed through a joint venture between NHPC Limited and the Government of Arunachal Pradesh, with an estimated completion timeline of 96 months.

Arunachal Pradesh will receive 12 percent free power from the project, with an additional one percent set aside for the Local Area Development Fund. The project is also expected to bring wider infrastructure and socio-economic benefits to the region.

Also Read: Arunachal CM Releases ₹33.41 Cr for Hydro Project Areas

The Cabinet also approved Rs 14,105.83 crore for the 1,200 MW Kalai-II Hydroelectric Project on the Lohit River in Anjaw district.

This project will be implemented as a joint venture between THDC India Limited and the state government, with a completion period of 78 months.

As with the Kamala project, the state will receive 12 percent free power and an additional one percent for the Local Area Development Fund, along with broader regional development benefits.

Beyond power generation, the Kalai-II project is expected to deliver significant on-ground infrastructure improvements in the Namsai and Anjaw districts.

This includes the development of approximately 29 kilometres of roads and bridges — infrastructure that will largely be available for local community use once the project is complete.