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The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved an investment proposal worth ₹26,069.50 crore for the construction of the Kamla Hydropower Project (HEP) in Arunachal Pradesh.
The project will be developed across the districts of Kamle district, Kra Daadi district, and Kurung Kumey district. With an installed capacity of 1720 MW (8x210 MW + 1x40 MW), the project is expected to be completed within 96 months.
Once operational, the project is expected to generate around 6,870 million units of electricity annually. It will significantly strengthen power supply in the region, help manage peak demand, contribute to grid stability, and assist in flood control in the Brahmaputra Valley.
The project will be implemented through a joint venture between NHPC Limited and the Government of Arunachal Pradesh. The central government will provide ₹4,743.98 crore for flood moderation components and ₹1,340 crore for enabling infrastructure such as roads, bridges, and transmission systems. Additionally, ₹750 crore will be provided as financial assistance for the state's equity share.
The project will also bring significant infrastructure development, including the construction of approximately 196 km of roads and bridges, improving connectivity in remote areas. Social infrastructure such as hospitals, schools, and markets will also be developed through a dedicated project fund.
Arunachal Pradesh will receive 12% free power from the project, along with an additional 1% allocation for the Local Area Development Fund (LADF), ensuring direct benefits to local communities. Employment opportunities, compensation, and CSR initiatives will further boost the socio-economic development of the region.
In addition to the Kamla project, NHPC Limited is also developing other major hydropower projects in the region, including Subansiri Lower (2000 MW), Dibang Multipurpose (2880 MW), and the proposed Etalin project (3097 MW), strengthening India’s renewable energy capacity and regional growth.
