Cabinet Sanctions Rs 14,105 Crore for Arunachal's Kalai-II Hydro Project
Synopsis
On April 8, the Indian Cabinet approved a substantial funding of Rs 14,105 crore for the Kalai-II hydro-electric project in Arunachal Pradesh, marking a crucial advancement in local energy infrastructure and socio-economic benefits for the region.
Key Takeaways
Investment of Rs 14,105 crore approved for the Kalai-II hydro-electric project.
Project capacity set at 1,200 MW , generating 4,852.95 MU of energy annually.
Implementation via a Joint Venture Company between THDC India Limited and the state government.
Local area development includes free power and community compensation.
Infrastructure upgrades expected in Namsai and Anjaw districts.
New Delhi, April 8 (NationPress) In a significant move, the Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi, has granted approval for an investment of Rs 14,105.83 crore for the establishment of the Kalai-II hydro-electric project (HEP) along the Lohit River in Anjaw district, Arunachal Pradesh.
The anticipated timeline for the project's completion is set at 78 months.
This initiative will feature an installed capacity of 1,200 MW (comprising 6 units of 190 MW each and 1 unit of 60 MW), and is projected to produce approximately 4,852.95 MU of electricity annually.
As the pioneer hydro project in the Lohit Basin, it aims to enhance the power supply within the state, assist in managing peak demand, and aid in stabilizing the national grid, as per official statements.
The implementation will be carried out via a Joint Venture Company formed between THDC India Limited and the state government.
The central government will provide Rs 599.88 crore for the development of roads, bridges, and related transmission lines under the enabling infrastructure, in addition to a Central Financial Assistance of Rs 750 crore towards the state’s equity share.
Furthermore, the state will receive 12% of the generated power for free and an extra 1% allocated for the Local Area Development Fund (LADF), alongside notable infrastructure advancements and socio-economic improvements for the locality.
Infrastructure upgrades in Namsai and Anjaw District of Arunachal Pradesh are expected, including the construction of approximately 29 kilometers of roads and bridges, primarily accessible for local utilization.
According to government reports, the local populace will also gain from various compensations, employment opportunities, and community development initiatives.
In addition, the government has approved an investment of Rs 26,069.50 crore for the construction of the Kamala Hydro Electric Project in the districts of Kamle, Kra Daadi, and Kurung Kumey within Arunachal Pradesh.
Point of View
Aiming to enhance power supply and socio-economic growth.
NationPress
17 Jul 2026
Frequently Asked Questions
What is the total investment approved for the Kalai-II project?
The Cabinet has approved an investment of Rs 14,105.83 crore for the Kalai-II hydro-electric project.
What is the expected power generation capacity of the project?
The Kalai-II project is expected to have an installed capacity of 1,200 MW and generate approximately 4,852.95 MU of energy annually.
Who will implement the project?
The project will be implemented through a Joint Venture Company between THDC India Limited and the state government.
What benefits will the local population receive?
The local population will benefit from free power, compensations, employment opportunities, and various community development initiatives.
When is the completion date for the project?
The estimated completion time for the project is 78 months.
