Cabinet Sanctions ₹26,069 Crore for Arunachal's 1,720 MW Kamala Hydro Electric Project

Key Takeaways

Investment of ₹26,069 crore approved for Kamala HEP.

Projected completion in 96 months .

Capacity of 1,720 MW expected to generate 6,870 MU of energy.

Significant infrastructure improvements planned for local districts.

Joint Venture between NHPC Limited and Arunachal Pradesh government.

On April 8, New Delhi (NationPress) reported that the Cabinet Committee on Economic Affairs (CCEA), led by Prime Minister Narendra Modi, has given the green light for an investment of Rs 26,069.50 crore to construct the Kamala Hydro Electric Project (HEP) in the districts of Kamle, Kra Daadi, and Kurung Kumey in Arunachal Pradesh.

The project is projected to take approximately 96 months for completion, as stated in the Cabinet note.

Significant infrastructure enhancements will occur in the Kamle, Kra Daadi, and Kurung Kumey districts, including the development of around 196 kilometers of roads and bridges. This infrastructure will primarily serve local needs, according to the Cabinet note.

The district's residents will also see improvements in vital infrastructure such as hospitals, schools, and marketplaces, funded by a dedicated project allocation of Rs 8 crore. Local communities will receive benefits from compensation, job opportunities, and corporate social responsibility (CSR) initiatives.

With an installed capacity of 1,720 MW (comprising 8 units of 210 MW and 1 unit of 40 MW), this project is expected to produce 6,870 MU of energy.

The energy generated will not only bolster the power supply in Arunachal Pradesh but also aid in managing peak demand, contribute to national grid stabilization, and provide flood management benefits in the Brahmaputra valley.

Alongside the Kamala HEP, other notable hydropower projects such as Subansiri Lower (2,000 MW) and Dibang Multipurpose (2,880 MW), are currently under construction, while the Etalin project (3,097 MW) is planned for future development by NHPC Limited in Arunachal Pradesh.

The Kamala HEP will be executed through a Joint Venture between NHPC Limited and the Arunachal Pradesh government.

The government will provide Rs 4,743.98 crore in budgetary support for the flood management component and Rs 1,340 crore for enabling infrastructure, including roads, bridges, and related transmission systems. Additionally, Rs 750 crore will be allocated as Central Financial Assistance towards the state’s equity share.

Importantly, the state will gain 12 percent of the power generated free of charge, plus an additional 1 percent set aside for the Local Area Development Fund (LADF), alongside substantial infrastructure development and socio-economic benefits for the region.

Point of View

The approval of the Kamala Hydro Electric Project represents a significant step towards enhancing energy security and infrastructure development in Arunachal Pradesh. The investment not only aims to boost the local economy but also addresses crucial energy needs in the region, signaling a commitment to sustainable development.

NationPress

17 Jul 2026

Frequently Asked Questions

What is the Kamala Hydro Electric Project?

The Kamala Hydro Electric Project is a major hydroelectric initiative approved for construction in Arunachal Pradesh, with an investment of ₹26,069 crore and a capacity of 1,720 MW.

How long will the project take to complete?

The project is expected to be completed in approximately 96 months.

What benefits will the local community receive?

The local community will benefit from infrastructure improvements, job opportunities, compensation, and CSR activities funded by the project.

What is the expected energy output of the project?

The project aims to generate about 6,870 MU of energy.

Who is implementing the project?

The Kamala HEP will be implemented through a Joint Venture between NHPC Limited and the Arunachal Pradesh government.