Date: 2026-04-08Category: Press ReleaseState: Union GovernmentCountry: India
Cabinet approves Investment Proposal for construction of 1200 MW Kalai-II Hydro Electric Project in Anjaw District of Arunachal Pradesh with an outlay of Rs.14105.83 crore
**Summary: Approval of Kalai-II Hydro Electric Project in Arunachal Pradesh**
**Overview**
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Shri Narendra Modi, has approved an investment of **Rs. 14,105.83 crore** for the construction of the **Kalai-II Hydro Electric Project (HEP)**. Situated on the Lohit River in the Anjaw District of Arunachal Pradesh, the project is slated for completion within an estimated timeframe of **78 months**.
**Technical Specifications and Energy Output**
The project features a total installed capacity of **1200 MW**, comprising six units of 190 MW and one unit of 60 MW. It is projected to generate **4852.95 MU** of energy annually. As the inaugural hydro project in the Lohit Basin, it aims to enhance state power supply, assist in peak demand management, and support national grid balancing.
**Implementation and Financial Framework**
The project will be executed through a Joint Venture Company between **THDC India Limited** and the **Government of Arunachal Pradesh**. The Government of India’s financial contribution includes:
* **₹599.88 crore:** Budgetary support for enabling infrastructure, including roads, bridges, and associated transmission lines.
* **₹750 crore:** Central Financial Assistance provided toward the State’s equity share.
**State and Local Benefits**
Under the agreement, Arunachal Pradesh will receive **12% free power**, with an additional **1%** allocated to the Local Area Development Fund (LADF). Regional benefits include:
* **Infrastructure:** Construction of approximately **29 kilometers** of roads and bridges in the Namsai and Anjaw Districts, which will be accessible for local use.
* **Socio-Economic Impact:** The project is expected to provide employment opportunities, CSR initiatives, and various forms of compensation to the local populace.
**Release Information**
* **Posted Date:** 08 APR 2026, 4:28 PM
* **Source:** PIB Delhi
* **Release ID:** 2250043
Key Entities Referenced
Kalai-II Hydro Electric Project (HEP): A 1200 MW hydro-electric project on the Lohit river in Arunachal Pradesh, approved with an investment of ₹14,105.83 crore.
THDC India Limited: The key implementing partner forming a Joint Venture Company with the state government to execute the project.
Anjaw District, Arunachal Pradesh: The primary location for the project's construction and the associated infrastructure development.
Cabinet Committee on Economic Affairs (CCEA): The high-level government body that approved the investment proposal for the hydro-electric project.
Local Area Development Fund (LADF): A fund receiving 1% earmarked power for local infrastructure and socio-economic benefits in the project region.
Cabinet Committee on Economic Affairs (CCEA)
Cabinet approves Investment Proposal for
construction of 1200 MW Kalai-II Hydro Electric
Project in Anjaw District of Arunachal Pradesh
with an outlay of Rs.14105.83 crore
Posted On: 08 APR 2026 4:28PM by PIB Delhi
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has
approved investment of Rs.14,105.83 crore for construction of Kalai-II Hydro Electric Project (HEP) on
Lohit river in Anjaw District of Arunachal Pradesh. The estimated completion period for the project is 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. As the first hydro project in the Lohit Basin, it will strengthen power
supply in the State, support in peak demand management, and contribute to balancing the national grid.
The Project will be implemented through a Joint Venture Company between THDC India Limited and the
Govt. of Arunachal Pradesh. Government of India shall extend ₹599.88 crore as budgetary support for
construction of roads, bridges and associated transmission line under enabling infrastructure besides
Central Financial Assistance of ₹750 crore towards equity share of the State.
The State will receive 12% free power and an additional 1% earmarked for the Local Area Development
Fund (LADF), along with significant infrastructure development and socio-economic benefits for the
region.
There will be significant improvement in infrastructure in Namsai and Anjaw District of Arunachal
Pradesh, including the development of around 29 kilometres of roads and bridges, for the project which
shall be mostly available for local use. Local populace shall also be benefitted from many sorts of
compensations, employment and CSR activities.
***
MJPS
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