Cabinet approves Investment Proposal for construction of 1720 MW Kamala Hydro Electric Project in Kamle, Kra Daadi & Kurung Kumey Districts of Arunachal Pradesh with an outlay of Rs.26,069.50 crore

**Executive Summary** The Cabinet Committee on Economic Affairs (CCEA) has approved a Rs. 26,069.50 crore investment for the construction of the 1720 MW Kamala Hydro Electric Project in Arunachal Pradesh. To be implemented by a Joint Venture between NHPC Limited and the state government, the project has an estimated completion timeline of 96 months. Key objectives include strengthening the national grid, managing peak power demand, and providing flood moderation in the Brahmaputra valley. **Key Points / Main Content** * **Project Specifications and Objectives** * The project features an installed capacity of 1720 MW (8 x 210 MW and 1 x 40 MW) with an expected annual generation of 6870 MU. * The initiative aims to improve power supply in Arunachal Pradesh, assist in national grid balancing, and provide flood moderation benefits. * The project is part of a larger hydropower development plan including the Subansiri Lower (2000 MW), Dibang Multipurpose (2880 MW), and Etalin (3097 MW) projects. * **Financial and Implementation Structure** * Implementation will be carried out 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 for flood moderation and Rs. 1,340 crore for enabling infrastructure (roads, bridges, and transmission systems). * Central Financial Assistance of Rs. 750 crore is allocated toward the State’s equity share. * **Regional Infrastructure and Socio-Economic Benefits** * The project includes the development of approximately 196 kms of roads and bridges intended for local use. * A dedicated fund of Rs. 8 crore is allocated for essential infrastructure, including hospitals, schools, and marketplaces. * The host state will receive 12% free power and an additional 1% for the Local Area Development Fund (LADF). * Local communities will benefit from compensation, employment opportunities, and Corporate Social Responsibility (CSR) activities. * **Timelines for Related Projects** * The Subansiri Lower HEP is at an advanced stage, with 750 MW already commissioned and the remaining capacity expected by December 2026. **Impact Analysis** **Government of Arunachal Pradesh** **Impact** The state will receive 12% free power and a 1% revenue share for local development. It also receives Rs. 750 crore in financial assistance for its equity stake and significant infrastructure improvements in the Kamle, Kra Daadi, and Kurung Kumey districts. **Action Required** The state government must partner with NHPC Limited to form the Joint Venture Company and oversee the utilization of the Local Area Development Fund. **NHPC Limited** **Impact** NHPC is designated as the lead developer for the Kamala HEP and other major projects in the region, expanding its operational footprint in the hydropower sector. **Action Required** NHPC must execute the construction within the 96-month timeframe, manage the infrastructure development of 196 kms of roads, and fulfill CSR and compensation obligations. **Local Population (Kamle, Kra Daadi, & Kurung Kumey Districts)** **Impact** Residents will gain access to improved transport infrastructure, new healthcare and educational facilities, and socio-economic benefits through employment and compensation. **Action Required** The local populace will be involved in the project through employment and will be the primary users of the newly developed infrastructure and essential services financed by the project.

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