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Cabinet Approves ₹40,000 Crore for Two Mega Hydropower Projects in Arunachal

The Cabinet Committee on Economic Affairs has approved investments exceeding ₹40,000 crore for two major hydroelectric projects in Arunachal Pradesh. The 1200 MW Kalai-II and 1720 MW Kamala projects are expected to generate a combined annual energy output of over 11,700 million units. These initiatives aim to strengthen regional power supply, manage peak demand, and contribute to national grid balancing. The projects will also bring substantial infrastructure development, flood moderation benefits, and employment opportunities to the local districts.

Key Points: ₹40,000 Crore Hydropower Projects Approved for Arunachal Pradesh

  • 1200 MW Kalai-II project on Lohit River
  • 1720 MW Kamala project across three districts
  • Projects to generate over 11,700 MU energy annually
  • Significant infrastructure and socio-economic benefits for region
  • Part of larger ₹1.74 lakh crore investment package
3 min read

Cabinet approves over Rs 40,000 crore investment for two hydropower projects in Arunachal Pradesh

Cabinet approves over ₹40,000 crore investment for 2920 MW hydropower projects in Arunachal Pradesh to boost green energy and grid stability.

"The State will receive 12 per cent free power and an additional 1 per cent earmarked for the Local Area Development Fund - Government Release"

New Delhi, April 8

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved investment proposals worth over Rs 40,000 crore for two major hydroelectric projects in Arunachal Pradesh aimed at boosting power generation and strengthening the national grid.

According to the Cabinet briefing by Union Minister Ashwini Vaishnaw, the Cabinet approved an investment of Rs 14,105.83 crore for the construction of the 1200 MW Kalai-II Hydro Electric Project on the Lohit River in Anjaw district of Arunachal Pradesh. The project is expected to be completed in 78 months.

The project 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.

He noted that this project will strengthen power supply in the state, support peak demand management and help balance the national grid.

The project will be implemented through a joint venture between THDC India Limited and the Government of Arunachal Pradesh.

"The State will receive 12 per cent free power and an additional 1 per cent earmarked for the Local Area Development Fund (LADF), along with significant infrastructure development and socio-economic benefits for the region," a release said.

The government will also provide Rs 599.88 crore as budgetary support for roads, bridges and transmission infrastructure, along with Rs 750 crore as central financial assistance towards the state's equity share.

The CCEA also approved an investment of Rs 26,069.50 crore for the 1720 MW Kamala Hydro Electric Project to be built across Kamle, Kra Daadi and Kurung Kumey districts of Arunachal Pradesh.

"The project with an installed capacity of 1720 MW (8 x 210 MW & 1 x 40 MW) is expected to generate 6870 MU of energy," a release said.

The power generated from the project will strengthen the power supply in the state, support peak demand management and contribute to national grid balancing.

The release also noted that the project would provide flood moderation benefits in the Brahmaputra Valley.

The Kamala project will be implemented through a joint venture between NHPC Limited and the Government of Arunachal Pradesh.

The government will provide Rs 4,743.98 crore as budgetary support for the flood moderation component and Rs 1,340 crore for enabling infrastructure such as roads, bridges and associated transmission systems, besides Rs 750 crore towards the equity share of the state.

"There will be significant improvement in the infrastructure in Kamle, Kra Daadi & Kurung Kumey districts, including the development of around 196 kilometres of roads and bridges," the release said.

The projects are also expected to generate employment, compensation benefits and corporate social responsibility (CSR) initiatives for the local population.

In his briefing, Ashwini Vaishnaw said that five major decisions were approved by the Cabinet with a total of Rs 1,74,207 crore worth of investments and subsidies across sectors.

- ANI

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Reader Comments

P
Priya S
Good to see such a large investment in our border state. Infrastructure development there is crucial for national security as much as for power. Hope the local communities truly benefit from the 12% free power and LADF.
R
Rohit P
While the investment is welcome, I hope the environmental impact on the Lohit River and surrounding areas is studied thoroughly. We need power, but not at the cost of the fragile Himalayan ecology. The 78-month timeline seems ambitious.
S
Sarah B
Generating nearly 12,000 MU of energy annually is impressive. This will significantly help in managing peak demand, especially during summers. The flood moderation benefits for Brahmaputra Valley are an added bonus.
V
Vikram M
Hope the promised 196 km of roads and bridges materialize on time. Connectivity in those districts is a major challenge. If done right, this could be a game-changer for the local economy beyond just the construction phase.
K
Karthik V
Rs 40,000 crore is a huge amount. I sincerely hope there is strict oversight on the spending and no cost overruns. The people deserve every rupee's worth of development. The joint venture model with state govt is a good step.

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