Cabinet Approves Rs 40,150 Crore for Two Hydropower Projects in Arunachal Pradesh
Cabinet Approves Rs 40,150 Cr Hydropower Projects in Arunachal

Union Cabinet Greenlights Massive Hydropower Investments in Arunachal Pradesh

In a significant move to bolster India's renewable energy portfolio and enhance regional infrastructure, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved investments totalling Rs 40,150 crore for two major hydropower projects in Arunachal Pradesh. This decision, taken by the Cabinet Committee on Economic Affairs (CCEA), underscores the government's commitment to expanding clean energy sources and driving socio-economic development in remote areas.

Kamala Hydro Electric Project: A Rs 26,069.50 Crore Initiative

The CCEA has sanctioned an investment of Rs 26,069.50 crore for the construction of the Kamala Hydro Electric Project (HEP), which will be located across the Kamle, Kra Daadi, and Kurung Kumey districts of Arunachal Pradesh. This project, with an estimated completion period of 96 months, is set to be developed through a joint venture between NHPC Ltd and the state government.

The Kamala project will feature eight units of 210 MW each and one unit of 40 MW, resulting in a total installed capacity of 1,720 MW. It is projected to generate approximately 6,870 million units of electricity annually, playing a crucial role in managing peak demand, balancing the grid, and moderating floods in the Brahmaputra basin.

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Beyond energy production, the project promises substantial infrastructure improvements in the region. Key developments include:

  • Construction of around 196 kilometers of roads and bridges, primarily for local use.
  • Funding for hospitals, schools, and marketplaces to uplift community facilities.
  • Benefits for local communities through compensation, employment opportunities, and Corporate Social Responsibility (CSR) initiatives.

Kalai-II Hydro Electric Project: A Rs 14,105.83 Crore Endeavor

Simultaneously, the CCEA has approved an investment of Rs 14,105.83 crore for the Kalai-II Hydro Electric Project, situated on the Lohit river in the Anjaw district of Arunachal Pradesh. With an estimated completion timeline of 78 months, this project will be executed by THDC India Limited in partnership with the state government.

The Kalai-II project will consist of six units of 190 MW each and one unit of 60 MW, achieving a total capacity of 1,200 MW. It is expected to produce about 4,853 million units of electricity per year, contributing significantly to the region's power supply and energy security.

Infrastructure enhancements associated with the Kalai-II project include:

  • Development of approximately 29 kilometers of roads and bridges, largely accessible to local residents.
  • Support for local populations through various compensations, job creation, and CSR activities.

Broader Implications and Support Mechanisms

Both projects will receive central government support for enabling infrastructure, such as roads, bridges, and transmission lines, along with financial assistance for the state's equity participation. In a move to benefit host states and local communities, the projects will allocate 12% free power to the state government and 1% for Local Area Development Funds.

These approvals are part of a larger strategy to harness Arunachal Pradesh's hydropower potential, complementing ongoing projects like the Subansiri Lower (2,000 MW), Dibang Multipurpose (2,880 MW), and Etalin (3,097 MW). Collectively, these initiatives reinforce the state's pivotal role in India's renewable energy expansion and energy security framework.

The investments are poised to drive socio-economic development in remote regions by creating jobs, expanding infrastructure, and improving connectivity. This aligns with national goals to increase renewable energy capacity and promote sustainable growth, marking a significant step forward in India's energy and infrastructure landscape.

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