The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved an investment of Rs.26,069.50 crore for the construction of the 1720 MW Kamala Hydro Electric Project (HEP) in Kamle, Kra Daadi, and Kurung Kumey districts of Arunachal Pradesh. The project is expected to be completed within 96 months.

The Kamala HEP will have an installed capacity of 1720 MW, consisting of eight units of 210 MW and one unit of 40 MW, and is projected to generate 6,870 million units (MU) of electricity. The power generated will support the state’s electricity supply, help manage peak demand, contribute to national grid stability, and provide flood moderation benefits in the Brahmaputra valley.

The project will be implemented through a joint venture between NHPC Limited and the Government of Arunachal Pradesh. The central government will provide Rs.4,743.98 crore for flood moderation, Rs.1,340 crore for infrastructure including roads, bridges, and transmission systems, and Rs.750 crore as financial assistance towards the state’s equity share.

Under the agreement, the state will receive 12% free power and an additional 1% for the Local Area Development Fund (LADF). Infrastructure development will include around 196 km of roads and bridges, along with hospitals, schools, and marketplaces. Local communities will also benefit from compensation, employment, and corporate social responsibility initiatives.

Kamala HEP is part of a series of major hydropower projects in the region, including Subansiri Lower (2000 MW), Dibang Multipurpose (2880 MW), and Etalin (3097 MW). Subansiri Lower HEP has already commissioned 750 MW, with full capacity expected by December 2026. All projects will provide 12% free power to host states and support local development through a 1% LADF.