The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved an investment of ₹14,105.83 crore for the construction of the Kalai-II Hydro Electric Project (HEP) on the Lohit River in Anjaw District, Arunachal Pradesh. The project, expected to be completed in 78 months, will have an installed capacity of 1,200 MW (6 x 190 MW & 1 x 60 MW) and is projected to generate 4,852.95 MU of energy annually.
The Kalai-II HEP, the first hydro project in the Lohit Basin, aims to strengthen power supply in the state, support peak demand management, and contribute to balancing the national grid. The project will be implemented through a joint venture between THDC India Limited and the Government of Arunachal Pradesh. The Union Government will provide ₹599.88 crore in budgetary support for roads, bridges, and associated transmission infrastructure, along with ₹750 crore in Central Financial Assistance as the state’s equity share.
The state will receive 12% free power and an additional 1% allocation for the Local Area Development Fund (LADF). The project is also expected to deliver significant socio-economic benefits, including the development of around 29 km of roads and bridges in Namsai and Anjaw districts, employment opportunities, compensation for affected communities, and CSR initiatives.
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