The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Shri Narendra Modi, has approved an investment of Rs.26,069.50 crore for the construction of the Kamala Hydro Electric Project (HEP) in Kamle, Kra Daadi, and Kurung Kumey districts of Arunachal Pradesh. The project is expected to be completed in 96 months.
The Kamala HEP, with a total installed capacity of 1,720 MW (8 x 210 MW & 1 x 40 MW), is projected to generate 6,870 MU of energy. The power generated will strengthen Arunachal Pradesh’s electricity supply, aid in peak demand management, support national grid balancing, and provide flood moderation benefits in the Brahmaputra valley.
The project will be implemented through a Joint Venture Company between NHPC Limited and the Government of Arunachal Pradesh, with the Government of India extending Rs.4,743.98 crore for flood moderation and Rs.1,340 crore for enabling infrastructure, including roads, bridges, and associated transmission systems. Additionally, Central Financial Assistance of Rs.750 crore will be provided toward the state’s equity share.
Under the project, the state will receive 12% free power and an additional 1% allocated to the Local Area Development Fund (LADF). The initiative will also bring significant infrastructure and socio-economic benefits to the region, including the development of 196 km of roads and bridges, as well as hospitals, schools, and marketplaces financed through dedicated project funds of Rs.8 crore. Local communities will benefit through employment, compensation, and CSR initiatives.
The Kamala HEP is part of a broader hydropower development strategy in Arunachal Pradesh, which includes Subansiri Lower HEP (2,000 MW), Dibang Multipurpose (2,880 MW), and Etalin HEP (3,097 MW), all being developed by NHPC Limited. The Subansiri Lower HEP has already commissioned 750 MW, with the remaining capacity expected by December 2026. Each of these projects will provide 12% free power to host states and contribute to local development via the LADF.
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