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 has approved a Rs. 26,069.50 crore investment for the 1,720 MW Kamala Hydro Electric Project in Arunachal Pradesh. The project is scheduled for completion within 96 months and aims to strengthen regional power supply, manage peak demand, and provide flood moderation in the Brahmaputra valley. Key financial provisions include budgetary support for infrastructure and a 12% free power allocation to the state. **Key Points / Main Content** **Project Specifications and Objectives** * **Capacity:** Total installed capacity of 1,720 MW (comprising eight 210 MW units and one 40 MW unit) with an expected generation of 6,870 MU. * **Primary Benefits:** Enhancement of power supply in Arunachal Pradesh, contribution to national grid balancing, and flood moderation benefits. * **Timeline:** The estimated completion period for the Kamala project is 96 months. **Financial and Administrative Framework** * **Joint Venture:** The project will be implemented by a Joint Venture Company formed between NHPC Limited and the Government of Arunachal Pradesh. * **Central Support:** 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). * **Equity Assistance:** Central Financial Assistance of Rs. 750 crore is allocated toward the State’s equity share. **Local and Regional Development** * **Revenue Sharing:** The State will receive 12% free power and an additional 1% of revenue earmarked for the Local Area Development Fund (LADF). * **Infrastructure Improvements:** Development of approximately 196 km of roads and bridges primarily for local use. * **Social Amenities:** Allocation of Rs. 8 crore from dedicated project funds for hospitals, schools, and marketplaces. **Related Hydropower Developments** * **NHPC Portfolio:** Other projects under development include Subansiri Lower (2,000 MW), Dibang Multipurpose (2,880 MW), and Etalin (3,097 MW). * **Status Update:** Subansiri Lower is in an advanced stage, with 750 MW commissioned and the remaining capacity expected by December 2026. **Impact Analysis** **State Government of Arunachal Pradesh** **Impact** The State receives a significant boost to its power supply, 12% free power, and financial assistance of Rs. 750 crore for its equity share in the project. **Action Required** Enter into a Joint Venture Company with NHPC Limited to oversee project implementation. **Local Population (Kamle, Kra Daadi, and Kurung Kumey Districts)** **Impact** Beneficiaries of 196 km of new roads/bridges, a Rs. 8 crore fund for essential social infrastructure (schools/hospitals), and 1% of project revenue via the LADF. They also gain through employment, compensation, and CSR activities. **Action Required** Engage with the project through employment opportunities and utilize the new infrastructure and social facilities provided. **NHPC Limited** **Impact** Assigned as the lead developer for the Kamala HEP and other major regional projects, strengthening its role in the Brahmaputra valley's energy infrastructure. **Action Required** Execute the construction and commissioning of the project within the 96-month timeline and manage the associated Joint Venture. **National Power Grid / Brahmaputra Valley** **Impact** Improved grid stability and peak demand management. The valley benefits from active flood moderation. **Action Required** Integrate the 6,870 MU of generated energy and manage flood moderation components provided by the project.

Key Entities Referenced