The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved an investment of ₹14,105.83 crore for the construction of the 1200 MW Kalai-II Hydro Electric Project in Anjaw district of Arunachal Pradesh. The project is expected to be completed within a period of 78 months.
The proposed hydroelectric project will be developed on the Lohit river and will have an installed capacity of 1200 MW, comprising six units of 190 MW each and one unit of 60 MW. Once operational, it is expected to generate approximately 4,852.95 million units (MU) of electricity annually. As the first hydro project in the Lohit basin, it will play a key role in strengthening the state’s power supply, addressing peak demand, and contributing to the stability of the national grid.
The project will be executed through a joint venture between THDC India Limited and the Government of Arunachal Pradesh. The Government of India will provide ₹599.88 crore as budgetary support for enabling infrastructure, including the construction of roads, bridges, and transmission lines. Additionally, central financial assistance of ₹750 crore will be extended towards the state’s equity share.
As per the approved plan, Arunachal Pradesh will receive 12% of the generated power free of cost, along with an additional 1% allocated to the Local Area Development Fund (LADF). The project is expected to bring substantial socio-economic benefits to the region through infrastructure development, local employment opportunities, compensation mechanisms, and corporate social responsibility (CSR) initiatives.
The Kalai-II project will also significantly improve infrastructure in Namsai and Anjaw districts. Around 29 kilometres of roads and bridges will be developed as part of the project, which will largely remain accessible for local use, thereby enhancing connectivity and supporting regional development.
