₹26,069 Crore Kamala Hydro Project Approved, Boost to Power and Infrastructure in Arunachal Pradesh

1,720 MW project to aid grid stability, flood control and regional development

New Delhi: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday approved an investment of ₹26,069.50 crore for the construction of the 1,720 MW Kamala Hydro Electric Project in Arunachal Pradesh.

The project, to be developed across Kamle, Kra Daadi and Kurung Kumey districts, is expected to be completed within 96 months and will generate around 6,870 million units (MU) of electricity annually.

The Kamala Hydro Electric Project will be implemented through a joint venture between NHPC Limited and the Government of Arunachal Pradesh, strengthening India’s push towards clean energy and regional infrastructure development.

Strengthening Power Supply and Grid Stability

The project is expected to significantly improve power availability in Arunachal Pradesh, support peak demand management, and contribute to national grid balancing. It will also provide flood moderation benefits in the Brahmaputra basin, addressing recurring flood challenges in the region.

Centre’s Financial Support and Strategic Push

The Central Government will provide ₹4,743.98 crore as budgetary support for flood moderation and ₹1,340 crore for enabling infrastructure, including roads, bridges and transmission systems. In addition, ₹750 crore will be extended as central financial assistance towards the state’s equity share.

Boost to Infrastructure and Local Economy

The project is expected to transform infrastructure in the region, with around 196 km of roads and bridges to be developed, which will also benefit local communities.

Social infrastructure such as hospitals, schools and marketplaces will be supported through dedicated project funds, while local populations are expected to benefit through employment opportunities, compensation packages and corporate social responsibility initiatives.

The state will also receive 12 per cent free power from the project, along with an additional 1 per cent allocated to the Local Area Development Fund.

Part of Larger Hydropower Expansion

The Kamala project is part of a broader hydropower expansion in the Northeast. Major projects including 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.

The Subansiri Lower project is already at an advanced stage, with 750 MW commissioned and the remaining capacity expected by December 2026.

The approval of the Kamala Hydro Electric Project marks a significant step towards enhancing clean energy capacity, improving regional connectivity, and driving socio-economic development in Arunachal Pradesh, while strengthening India’s long-term energy security.