The Public Investment Board (PIB) has given the green light to the Kamala Hydropower Project in Arunachal Pradesh, clearing an investment of about ₹26,069 crore for the development of this major renewable energy initiative.
The project, with a planned installed capacity of 1,720 megawatts (MW), will be built on the Kamala River, a tributary of the Subansiri, across the districts of Kamle, Kra Daadi and Kurung Kumey. It is designed as a storage-based hydroelectric scheme with an additional flood moderation component that aims to provide downstream flood control in the Brahmaputra basin.
Under the Build-Own-Operate-Transfer (BOOT) model, the project will be executed by a joint venture with NHPC Ltd holding 74 % equity and the Government of Arunachal Pradesh holding 26 %. Financing is planned with a 70:30 debt-equity ratio, supported by central government grants for enabling infrastructure and flood moderation measures, as well as full reimbursement of state GST.
Once completed over an estimated period of eight years, Kamala is expected to generate around 6,870 million units of renewable energy annually, contributing to India’s energy transition and its Net Zero by 2070 goals. The facility will also supply 12 % free power to the state, strengthen regional infrastructure, create substantial employment during construction, and support local development funds.
In tandem with the hydropower project, authorities have also approved preliminary plans for ₹3,000 crore worth of advanced power equipment testing infrastructure to support faster and higher-quality execution of power sector projects.
