The Cabinet Committee on Economic Affairs, chaired by Narendra Modi, has approved an investment of ₹26,069.50 crore for the construction of the 1720 MW Kamala Hydro Electric Project (HEP) across Kamle, Kra Daadi, and Kurung Kumey districts of Arunachal Pradesh. The project is scheduled for completion within 96 months.
With an installed capacity of 1720 MW (8 x 210 MW and 1 x 40 MW), the Kamala HEP is expected to generate 6,870 million units (MU) of electricity. The project aims to strengthen the state’s power supply, support peak demand management, and contribute to national grid stability. It will also provide flood moderation benefits in the Brahmaputra Valley.
The project will be implemented through a joint venture between NHPC Limited and the Government of Arunachal Pradesh. The Government of India will provide ₹4,743.98 crore as budgetary support for flood moderation and ₹1,340 crore for enabling infrastructure, including roads, bridges, and associated transmission systems. Additionally, central financial assistance of ₹750 crore will be extended towards the state’s equity share.
The host state will receive 12% free power from the project, along with an additional 1% allocated to the Local Area Development Fund (LADF). The initiative is expected to deliver substantial socio-economic benefits, including infrastructure development and local employment opportunities.
As part of the project, approximately 196 km of roads and bridges will be developed, largely benefiting local communities. Essential infrastructure such as hospitals, schools, and marketplaces will also be established, supported by a dedicated fund of ₹8 crore. The project is further expected to generate compensation, employment, and CSR-driven benefits for the local population.
The Kamala HEP is part of a broader hydropower development push in the region led by NHPC Limited. Key projects include the 2000 MW Subansiri Lower, 2880 MW Dibang Multipurpose, and 3097 MW Etalin projects. Among these, the Subansiri Lower project has already commissioned 750 MW, with the remaining capacity expected to be operational by December 2026. All projects will provide 12% free power to host states and contribute to local development through a LADF equivalent to 1% of project revenue.
