The Cabinet Committee on Economic Affairs, chaired by Narendra Modi, has approved an investment of Rs 14,105.83 crore for the construction of the 1,200 MW Kalai-II Hydro Electric Project in Anjaw District.

The project, to be developed on the Lohit River, is expected to be completed within 78 months. With an installed capacity of 1,200 MW (6x190 MW and 1x60 MW), it is projected to generate 4,852.95 million units of electricity annually.

As the first hydroelectric project in the Lohit basin, it is expected to enhance power supply in the state, support peak demand management, and contribute to grid stability at the national level.

The project will be implemented through a joint venture between THDC India Limited and the Government of Arunachal Pradesh. The Centre will provide budgetary support of Rs 599.88 crore for enabling infrastructure such as roads, bridges, and transmission lines, along with central financial assistance of Rs 750 crore towards the state’s equity share.

The state will receive 12% free power, along with an additional 1% allocated to the Local Area Development Fund (LADF). The project is also expected to drive infrastructure development, including around 29 km of roads and bridges, while generating employment opportunities and delivering socio-economic benefits to local communities in Namsai and Anjaw districts.