The Cabinet Committee on Economic Affairs (CCEA) has given the green light for a substantial investment of Rs 26,069.50 crore aimed at the construction of the Kamala Hydroelectric Project (HEP), which will have a capacity of 1720 MW. This decision was made during a meeting chaired by Prime Minister Narendra Modi, as confirmed by a government release.

Situated across the Kamle, Kra Daadi, and Kurung Kumey districts of Arunachal Pradesh, the project is anticipated to be completed within a time frame of 96 months. The Kamala HEP is designed to generate approximately 6,870 million units of clean energy annually, significantly enhancing the power supply in the region.

Furthermore, the project aims to bolster power management during peak demand periods, assist in balancing the national grid, and provide flood mitigation benefits in the Brahmaputra valley. The execution will be managed through a joint venture between NHPC Limited and the Government of Arunachal Pradesh.

Financial Contributions and Support

The Government of India has committed substantial financial support towards various components of the project. An allocation of Rs 4,743.98 crore will be directed towards funding the flood mitigation aspect, while Rs 1,340 crore is earmarked for constructing essential infrastructure such as roads, bridges, and associated transmission systems.

Moreover, the project is set to receive an additional Rs 750 crore in Central Financial Assistance (CFA) to support the equity share of the State Government. This financial backing is expected to facilitate the effective implementation of the Kamala HEP and its anticipated benefits to the region.

In expressing gratitude towards the Union Government and Prime Minister Modi, Bhupender Gupta, the CMD of NHPC, remarked on the approval’s significance for the hydropower sector. He highlighted the project’s pivotal role in promoting clean energy and fostering socio-economic development in Arunachal Pradesh.

Local Benefits and Infrastructure Development

Arunachal Pradesh will benefit from 12 per cent of the generated power, with an additional 1 per cent allocated to the Local Area Development Fund (LADF). This highlights the local commitment to ensuring that the surrounding communities directly benefit from the hydropower project.

Besides providing energy, the Kamala HEP is expected to spur significant socio-economic advancement in the region, focusing on infrastructure development, enhanced connectivity, and job creation. These initiatives are designed to improve the local economy and provide long-term benefits.

The project is also poised to support the establishment of essential community infrastructure, including hospitals, schools, and marketplaces. These developments will be financed through dedicated project funds, further reinforcing the project’s commitment to improving local living standards.

Additionally, the local population will have opportunities for employment and compensation linked to the project. Corporate Social Responsibility (CSR) initiatives associated with the Kamala HEP are also anticipated to foster community growth and engagement, providing a more holistic benefit to those living in the area.

Connection to Other Hydropower Projects

Apart from the Kamala HEP, NHPC Limited is currently working on three other major hydropower initiatives: Subansiri Lower (2000 MW), Dibang Multipurpose (2880 MW), and Etalin (3097 MW) across Arunachal Pradesh and Assam. The Subansiri Lower HEP has made significant progress, with 750 MW already operational, and the remaining capacity is expected to be commissioned by December 2026.

These ongoing projects reflect a broader commitment to expanding the hydropower sector in the region, aiming to ensure energy security and contribute to sustainable development. The combined efforts of these projects underline the government’s focus on enhancing renewable energy output throughout India.

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