New Delhi, April 8 – The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved an investment of ₹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.
The estimated completion period for the project is 96 months, according to a Cabinet note.
The project will significantly improve infrastructure in the Kamle, Kra Daadi, and Kurung Kumey districts, including the development of approximately 196 km of roads and bridges, which will primarily benefit the local population, the note stated.
The district will also benefit from the construction of essential infrastructure, such as hospitals, schools, and marketplaces, which will be financed from a dedicated project fund of ₹8 crore. The local population will also benefit from compensation, employment, and Corporate Social Responsibility (CSR) activities.
The project, with an installed capacity of 1,720 MW (8 x 210 MW and 1 x 40 MW), is expected to generate 6,870 MU of energy.
The power generated from the project will strengthen the power supply in the state of Arunachal Pradesh, support peak demand management, contribute to national grid balancing, and provide flood moderation benefits in the Brahmaputra valley.
In addition to the Kamala HEP, other hydropower projects – Subansiri Lower (2,000 MW) and Dibang Multipurpose (2,880 MW) – are under construction, and Etalin (3,097 MW) is planned for development by NHPC Limited in Arunachal Pradesh, according to a statement.
The Kamala HEP will be implemented through a Joint Venture Company between NHPC Limited and the Arunachal Pradesh government.
The government will provide ₹4,743.98 crore as budgetary support for the flood moderation component and ₹1,340 crore as budgetary support for enabling infrastructure – the construction of roads, bridges, and associated transmission systems, in addition to a Central Financial Assistance of ₹750 crore towards the state's equity share.
Notably, the state will receive 12% free power and an additional 1% earmarked for the Local Area Development Fund (LADF), along with significant infrastructure development and socio-economic benefits for the region.