Cabinet Clears Another ₹26,069.50 Crore for Kamala Hydro Project in Arunachal Pradesh

he Cabinet Committee on Economic Affairs has approved an investment of ₹26,069.50 crore for the construction of the 1,720 MW Kamala Hydro Electric Project in Arunachal Pradesh. The project will come up across Kamle, Kra Daadi and Kurung Kumey districts, with an estimated completion period of 96 months.

Designed with eight 210 MW units and one 40 MW unit, the Kamala project is expected to generate 6,870 million units of electricity. According to the government, the project is intended to strengthen Arunachal Pradesh’s power supply, support peak demand management, contribute to national grid balancing, and provide flood moderation benefits in the Brahmaputra valley.

The hydro project will be implemented through a joint venture between NHPC Limited and the Government of Arunachal Pradesh. The Centre will extend ₹4,743.98 crore as budgetary support for the flood moderation component, ₹1,340 crore for enabling infrastructure such as roads, bridges and the associated transmission system, and ₹750 crore as central financial assistance towards the state’s equity share.

Arunachal Pradesh will receive 12 percent free power from the project, along with an additional 1 percent earmarked for the Local Area Development Fund. The government has also said the project will bring wider socio-economic gains to the region through compensation, employment generation and CSR activities.

The project is expected to significantly improve local infrastructure in the three districts, including the development of around 196 kilometres of roads and bridges, much of which will remain available for public use. Dedicated project funds of ₹8 crore will also support the construction of essential facilities such as hospitals, schools and marketplaces.

The PIB release also placed Kamala in the wider context of hydropower development in the region, noting that Subansiri Lower (2,000 MW) and Dibang Multipurpose (2,880 MW) are under development, while Etalin (3,097 MW) is planned. It added that 750 MW of Subansiri Lower has already been commissioned, with the remaining capacity expected by December 2026.

Reference: PIB