The Government of India has cleared two major hydropower projects in Arunachal Pradesh, aiming to boost electricity supply, improve infrastructure, and support local development in the region.
The approvals were given by the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi.
The bigger of the two projects is the Kamala Hydro Electric Project, which will be built across Kamle, Kra Daadi and Kurung Kumey districts. It will have a capacity of 1,720 MW and is expected to produce around 6,870 million units (MU) of electricity. The project is estimated to cost ₹26,069.50 crore and will take about 96 months to complete.
This project will be developed through a joint venture between NHPC Limited and the Arunachal Pradesh government. The Centre will provide ₹4,743.98 crore for flood control in the Brahmaputra Valley, along with ₹1,340 crore for roads, bridges and transmission systems. Another ₹750 crore will be given as financial support for the state’s equity share.
Apart from power generation, the project is expected to help manage peak electricity demand and improve grid stability. It will also bring local benefits like 12% free power to the state and 1% revenue for a Local Area Development Fund. Around 196 km of roads and bridges will be built, along with facilities such as hospitals, schools and markets. Local people are expected to benefit through jobs, compensation and CSR activities.
Other major projects like Subansiri Lower (2,000 MW), Dibang Multipurpose (2,880 MW) and Etalin (3,097 MW) are also part of the region’s hydropower push, with Subansiri already partially operational and expected to be fully ready by December 2026.
Kalai-II Hydro Electric Project
The government has also approved the Kalai-II Hydro Electric Project on the Lohit river in Anjaw district, with an investment of ₹14,105.83 crore. This project will have a capacity of 1,200 MW and is expected to generate around 4,852.95 MU of electricity every year. It is planned to be completed within 78 months.
This will be the first hydropower project in the Lohit basin and is expected to improve power supply in the state while supporting peak demand and national grid balance.
The project will be developed through a joint venture between THDC India Limited and the Arunachal Pradesh government. The Centre will provide ₹599.88 crore for enabling infrastructure like roads, bridges and transmission lines, along with ₹750 crore as financial support for the state’s equity.
Infrastructure development will include around 29 km of roads and bridges, mainly for local use. Like the Kamala project, Arunachal Pradesh will get 12% free power and 1% revenue for local development. The project is also expected to generate jobs, compensation benefits and CSR support for nearby communities.

