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India Approves Rs 26,069 Crore for 1720 MW Kamala Hydroelectric Project

The Cabinet Committee on Economic Affairs has approved a massive Rs 26,069.50 crore investment for the 1720 MW Kamala Hydro Electric Project in Arunachal Pradesh. The project, expected to be completed in 96 months, will generate 6,870 million units of clean energy annually and aid in flood moderation in the Brahmaputra valley. It will be implemented through a Joint Venture between NHPC and the Arunachal Pradesh government, with significant central financial support. The project promises substantial socio-economic benefits for the region, including free power for the state, infrastructure development, and employment generation.

Key Points: Cabinet Approves 1720 MW Kamala Hydro Project in Arunachal

  • 1720 MW clean energy project
  • Rs 26,069.50 crore investment
  • 96-month completion timeline
  • Strengthens power supply & grid stability
  • Major socio-economic benefits for Arunachal
3 min read

CCEA approves investment for development of 1720 MW Kamala Hydroelectric project in Arunachal

CCEA approves Rs 26,069 crore investment for 1720 MW Kamala Hydroelectric Project in Arunachal Pradesh, boosting clean energy and regional development.

"The approval... reflects the country's sustained focus on clean and sustainable energy development. - Bhupender Gupta, CMD, NHPC"

New Delhi, April 9

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved an investment of Rs 26,069.50 crore for the construction of the 1720 MW Kamala Hydro Electric Project in the Kamle, Kra Daadi and Kurung Kumey districts of Arunachal Pradesh.

The estimated completion period of the project is 96 months. The Kamala HEP, with an installed capacity of 1720 MW (8 x 210 MW + 1 x 40 MW), is expected to generate 6,870 million units (MU) of clean energy annually. The project will help strengthen the power supply position in Arunachal Pradesh, support peak demand management, contribute to national grid balancing and provide flood moderation benefits in the Brahmaputra valley, a release said.

The project will be implemented through a Joint Venture Company between NHPC Limited and the Government of Arunachal Pradesh. The Government of India will provide Rs 4,743.98 crore as budgetary support towards the flood moderation component and Rs 1,340 crore for enabling infrastructure, including roads, bridges and associated transmission systems. In addition, Rs 750 crore will be provided as Central Financial Assistance (CFA) towards the State Government's equity share, it said.

On this occasion, Bhupender Gupta, CMD, NHPC, expressed his gratitude to the Union Government, Prime Minister Narendra Modi and the Government of Arunachal Pradesh for their continued support and cooperation in taking the Kamala Hydroelectric Project forward, as per the release.

He said that the approval of the project is of great significance for the hydropower sector and reflects the country's sustained focus on clean and sustainable energy development. He added that the project will play an important role in strengthening energy security, enhancing grid stability and contributing to the socio-economic development of Arunachal Pradesh through infrastructure creation, employment generation and local area development.

The State of Arunachal Pradesh will receive 12% free power, along with an additional 1% free power earmarked for the Local Area Development Fund (LADF). The project is also expected to bring substantial socio-economic benefits to the region through infrastructure development, improved connectivity, employment generation and local area development. The region is also expected to benefit from the creation of essential community infrastructure such as hospitals, schools and marketplaces, to be supported through dedicated project funds. In addition, the local populace is expected to benefit through compensation, employment opportunities and CSR initiatives associated with the project.

Beside Kamala HEP, three major hydropower projects - Subansiri Lower (2000 MW), Dibang Multipurpose (2880 MW) and Etalin (3097 MW) - being developed by NHPC Limited in Arunachal Pradesh and Assam. Subansiri Lower HEP (2000 MW) is at an advanced stage with 750 MW already commissioned and remaining capacity is expected to be commissioned shortly by December 2026, the release added.

- ANI

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Reader Comments

P
Priya S
While the project's benefits are clear, 96 months is a very long time. I hope the timeline is adhered to and cost overruns are avoided. The infrastructure development for local communities is the most promising part. Schools and hospitals are badly needed in those regions.
R
Rohit P
Massive investment! Over 26,000 crore is a huge amount. The flood moderation benefits for Brahmaputra valley alone make this worthwhile. Our northeastern states deserve this kind of developmental push. Jai Hind!
S
Sarah B
Clean energy projects are the future. With Subansiri, Dibang, and Etalin also in the pipeline, Arunachal is becoming India's hydropower hub. This is crucial for reducing our carbon footprint. The focus on local employment is commendable.
V
Vikram M
Good news, but execution is key. NHPC has experience, but projects in ecologically sensitive areas need extra care. I hope the promised CSR initiatives and compensation for the local populace are delivered transparently and on time. The development should be for the people, not just on paper.
K
Karthik V
Strengthening the national grid and providing power to Arunachal is excellent. The roads and bridges built as enabling infrastructure will be a lasting benefit for connectivity in those remote districts. A win-win for energy and regional development.

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