Cabinet Clears ₹14,105.83 Crore Kalai-II Hydro Project in Arunachal Pradesh

The Cabinet Committee on Economic Affairs has approved an investment proposal worth ₹14,105.83 crore for the construction of the 1,200 MW Kalai-II Hydro Electric Project in Arunachal Pradesh’s Anjaw district. The project, to be built on the Lohit river, has an estimated completion period of 78 months.

With an installed capacity of 1,200 MW, configured as six 190 MW units and one 60 MW unit, the Kalai-II project is expected to generate 4,852.95 million units of electricity annually. According to the government, it will be the first hydroelectric project in the Lohit Basin and is expected to strengthen power supply in Arunachal Pradesh, help manage peak electricity demand, and support grid balancing at the national level.

The project will be implemented through a joint venture company formed by THDC India Limited and the Government of Arunachal Pradesh. The Centre will provide ₹599.88 crore as budgetary support for enabling infrastructure such as roads, bridges, and associated transmission lines. In addition, the state will receive ₹750 crore as central financial assistance towards its equity share in the project.

Arunachal Pradesh is also set to receive 12 percent free power from the project, along with an additional 1 percent earmarked for the Local Area Development Fund. The project is expected to bring wider regional benefits through infrastructure expansion, compensation measures, employment opportunities, and corporate social responsibility activities for local communities.

The government said the project will improve connectivity and public infrastructure in Namsai and Anjaw districts, including the development of around 29 kilometres of roads and bridges, much of which is expected to remain available for local use.

Source: PIB