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CCEA Approves INR 40,175 Crore Investment for 2,920 MW Hydro Projects in Arunachal Pradesh

The Cabinet Committee on Economic Affairs has approved investment of INR 26,069.50 crore for the 1,720 MW Kamala Hydro Electric Project and INR 14,105.83 crore for the 1,200 MW Kalai-II Hydro Electric Project in Arunachal Pradesh.

April 09, 2026. By Mrinmoy Dey

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved investment aggregating to INR 40,175.33 crore for the construction of two hydropower projects in Arunachal Pradesh.

While CCEA has approved INR 26,069.50 crore for the construction of the Kamala Hydro Electric Project (HEP) in Kamle, Kra Daadi and Kurung Kumey Districts of Arunachal Pradesh. It has approved an investment of INR 14,105.83 crore for the construction of Kalai-II Hydro Electric Project (HEP) on the Lohit River in Anjaw District of Arunachal Pradesh.

The Kamala HEP with an installed capacity of 1,720 MW (8 x 210 MW and 1 x 40 MW) is expected to generate 6870 MU of energy and is estimated to be completed in 8 years. It will be implemented through a Joint Venture Company between NHPC and the Government of Arunachal Pradesh. Government of India shall extend INR 4,743.98 crore as budgetary support towards flood moderation component and INR 1,340 crore as budgetary support for enabling infrastructure viz., construction of roads, bridges and associated transmission system, besides Central Financial Assistance of INR 750 crore towards the equity share of the State.

The Kalai-II HEP with an installed capacity of 1200 MW (6 x 190 MW & 1 x 60 MW) is expected to generate 4852.95 MU of energy annually, and is estimated to be completed in 6.5 years. The project will be implemented through a Joint Venture Company between THDC India and the Government of Arunachal Pradesh. Government of India shall extend INR 599.88 crore as budgetary support for the construction of roads, bridges and associated transmission line under enabling infrastructure, besides Central Financial Assistance of INR 750 crore towards equity share of the State.

In both the projects, the State will receive 12 percent free power and an additional 1 percent earmarked for the Local Area Development Fund (LADF), along with significant infrastructure development and socio-economic benefits for the region.

Besides Kamala HEP, three major hydropower projects – Subansiri Lower (2,000 MW), Dibang Multipurpose (2,880 MW), and Etalin (3,097 MW) – are being developed by NHPC in Arunachal Pradesh and Assam. Subansiri Lower HEP is at an advanced stage, with 750 MW already commissioned, and the remaining capacity is expected to be commissioned by December 2026.

Tags:

Hydropower

Cabinet Committee on Economic Affairs

CCEA

Kamala Hydro Electric Project

Kalai-II Hydropower Project

Hydro power projects in Arunachal Pradesh

NHPC hydroelectric projects

THDC