Cabinet clears Rs 26,000 crore Kamala hydropower project in Arunachal Pradesh

The Cabinet Committee on Economic Affairs has approved an investment of Rs 26,069.50 crore for the 1,720 MW Kamala Hydroelectric Project in Arunachal Pradesh, marking a significant addition to India’s renewable energy pipeline and the Northeast’s power infrastructure.

Planned across the Kamle, Kra Daadi and Kurung Kumey districts, the project is expected to be completed within eight years. Once operational, it is projected to generate around 6,870 million units of electricity annually, contributing to cleaner energy supply and supporting peak demand management across the national grid.

Officials indicated that the project will also play a strategic role in flood moderation in the Brahmaputra basin, a region prone to seasonal flooding, while improving grid stability through hydropower balancing capacity.

The project will be developed through a joint venture between NHPC Limited and the Arunachal Pradesh government. The Centre has committed Rs 4,743.98 crore towards flood control measures and Rs 1,340 crore for associated infrastructure such as roads, bridges and transmission links. An additional Rs 750 crore has been earmarked as financial assistance for the state’s equity participation.

Beyond power generation, the project is expected to drive regional development through improved connectivity and job creation during construction and operation phases. State authorities will receive 12% free power from the project, along with an additional 1% allocated for local area development.

The approval comes amid a broader push to scale up hydropower capacity in the Northeast. Several large projects led by NHPC are already underway, including the 2,000 MW Subansiri Lower project and the 2,880 MW Dibang Multipurpose project, both seen as critical to strengthening India’s renewable energy mix. The Subansiri project has partially commenced operations, with full commissioning targeted by the end of 2026.

The Kamala project is expected to further consolidate the region’s role as a key hub for hydropower generation while addressing long-standing infrastructure and energy gaps.