New Delhi : The Cabinet Committee on Economic Affairs, chaired by Narendra Modi, has approved an investment of ₹26,069.50 crore for the construction of the Kamala Hydro Electric Project (HEP) in the districts of Kamle, Kra Daadi, and Kurung Kumey in Arunachal Pradesh.
The ambitious project, with an installed capacity of 1,720 MW, is expected to be completed within 96 months and will generate approximately 6,870 million units (MU) of energy. The power generated will significantly strengthen the state’s energy security, support peak demand management, and contribute to grid stability at the national level. Additionally, the project is expected to offer flood moderation benefits in the Brahmaputra valley.
The Kamala HEP will be developed through a joint venture between NHPC Limited and the Government of Arunachal Pradesh. The Centre will extend financial support including ₹4,743.98 crore for flood moderation, ₹1,340 crore for enabling infrastructure such as roads, bridges, and transmission systems, along with ₹750 crore as central financial assistance toward the state’s equity share.
The state will benefit from 12% free power, along with an additional 1% allocated for the Local Area Development Fund. The project is also expected to bring substantial socio-economic gains, including the development of nearly 196 km of roads and bridges, as well as essential infrastructure like hospitals, schools, and marketplaces.
Local communities are likely to benefit through employment opportunities, compensation, and corporate social responsibility initiatives. The project is part of a broader push to harness the hydropower potential of the region, alongside other major projects such as Subansiri Lower, Dibang Multipurpose, and Etalin, being developed by NHPC Limited.
Overall, the Kamala Hydro Electric Project marks a significant step toward boosting clean energy capacity while driving infrastructure development and economic growth in the northeastern region.
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