The Cabinet Committee on Economic Affairs, chaired by Narendra Modi, has approved an investment of Rs 26,069.50 crore for the construction of the 1,720 MW Kamala Hydro Electric Project in Kamle District, Kra Daadi District, and Kurung Kumey District.

The project, with an estimated completion period of 96 months, will have an installed capacity of 1,720 MW (8x210 MW and 1x40 MW) and is expected to generate 6,870 million units of electricity annually.

The power generated will strengthen Arunachal Pradesh’s energy supply, support peak demand management, aid national grid balancing, and provide flood moderation benefits in the Brahmaputra Valley.

The project will be implemented through a joint venture between NHPC Limited and the Government of Arunachal Pradesh. The Centre will provide budgetary support of Rs 4,743.98 crore for flood moderation and Rs 1,340 crore for enabling infrastructure, including roads, bridges, and transmission systems, along with central financial assistance of Rs 750 crore towards the state’s equity share.

The state will receive 12% free power, with an additional 1% allocated to the Local Area Development Fund (LADF). The project is also expected to boost infrastructure development, including around 196 km of roads and bridges, along with essential facilities such as hospitals, schools, and marketplaces funded through dedicated project allocations.

The Kamala project is part of a broader hydropower push in the region, alongside projects such as Subansiri Lower (2,000 MW), Dibang Multipurpose (2,880 MW), and Etalin (3,097 MW), being developed by NHPC Limited. The Subansiri Lower project is already at an advanced stage, with 750 MW commissioned and the remaining capacity expected by December 2026.