New Delhi, April 08: The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved an investment of ₹26,069.50 crore for the development of the Kamala Hydro Electric Project (HEP) in Arunachal Pradesh.
The project will span the districts of Kamle, Kra Daadi, and Kurung Kumey and is expected to be completed within 96 months.
The 1,720 MW project (comprising 8×210 MW and 1×40 MW units) is projected to generate approximately 6,870 million units (MU) of electricity annually. It is expected to significantly strengthen the state’s power supply, aid peak demand management, and contribute to national grid stability, while also offering flood moderation benefits in the Brahmaputra basin.
The project will be implemented through a joint venture between NHPC Limited and the Arunachal Pradesh government. The Centre will provide budgetary support of ₹4,743.98 crore for flood moderation and ₹1,340 crore for enabling infrastructure, including roads, bridges, and transmission systems. Additionally, ₹750 crore will be extended as central financial assistance toward the state’s equity share.
Infrastructure development remains a key component, with around 196 km of roads and bridges planned, alongside investments in social infrastructure such as hospitals, schools, and marketplaces. A dedicated ₹8 crore fund has been earmarked for these initiatives.
The project is also expected to deliver socio-economic benefits through local employment, compensation, and corporate social responsibility (CSR) initiatives. The state will receive 12% free power, along with an additional 1% allocation for the Local Area Development Fund (LADF).
The Kamala HEP forms part of a broader hydropower expansion strategy in Arunachal Pradesh, alongside ongoing and planned projects such as Subansiri Lower, Dibang Multipurpose, and Etalin, reinforcing the region’s role in India’s renewable energy roadmap.
