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Arunachal Pradesh Gets Rs.40,175 Crore Investment in Two Hydropower Projects Approved by Cabinet

Arunachal Pradesh | By Enersider Desk

The Cabinet Committee on Economic Affairs headed by Prime Minister Narendra Modi, on Wednesday approved two hydroelectric projects in Arunachal Pradesh with a combined investment of Rs.40,175.33 crore.

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An investment of Rs.14,105.83 crore has been approved for the 1200 MW Kalai-II Hydro Electric Project on the Lohit river in Anjaw district, an official statement said. 

The project will be implemented through a joint venture between THDC India Limited and the Government of Arunachal Pradesh. The estimated completion period is 78 months. 

The project, with an installed capacity of 1200 MW (6 x 190 MW and 1 x 60 MW), is expected to generate 4852.95 MU of energy annually. 

As the first hydro project in the Lohit Basin, it is expected to support power supply in the state, assist in peak demand management, and contribute to grid balancing, the statement added.

The Union government will provide Rs.599.88 crore as budgetary support for enabling infrastructure, including roads, bridges, and transmission lines, and Rs.750 crore as central financial assistance towards the state’s equity share. 

The state will receive 12% free power and an additional 1% for the Local Area Development Fund (LADF). The project includes development of around 29 km of roads and bridges and is expected to provide compensation, employment, and CSR benefits to local populations.

Separately, an investment of Rs.26,069.50 crore has been approved for the 1720 MW Kamala Hydro Electric Project across Kamle, Kra Daadi, and Kurung Kumey districts. 

The project will be implemented through a joint venture between NHPC Limited and the Government of Arunachal Pradesh, with a completion period of 96 months. The project has an installed capacity of 1720 MW (8 x 210 MW and 1 x 40 MW) and is expected to generate 6870 MU of energy.

The Union government will extend Rs.4743.98 crore towards the flood moderation component and Rs.1340 crore for enabling infrastructure, along with Rs.750 crore as central financial assistance for the state’s equity share. 

The project will also provide 12% free power and 1% for LADF. It includes development of around 196 km of roads and bridges and provision for infrastructure such as hospitals, schools, and marketplaces funded through dedicated project funds.

Other hydropower projects in the region include Subansiri Lower (2000 MW), Dibang Multipurpose (2880 MW), and Etalin (3097 MW), being developed by NHPC Limited. Subansiri Lower has 750 MW already commissioned, with the remaining capacity expected by December 2026. All projects provide 12% free power to host states and allocate 1% of revenue for local development funds.

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