Page 47 - Policy Economic Report - April 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Cabinet approves Investment Proposal for construction of 1200 MW Kalai-II Hydro Electric Project in
Anjaw District of Arunachal Pradesh with an outlay of Rs.14105.83 crore

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has
approved investment of Rs.14,105.83 crore for construction of Kalai-II Hydro Electric Project (HEP) on
Lohit river in Anjaw District of Arunachal Pradesh. The estimated completion period for the project is 78
months.

The project with an installed capacity of 1200 MW (6 x 190 MW & 1 x 60 MW) is expected to generate
4852.95 MU of energy annually. As the first hydro project in the Lohit Basin, it will strengthen power
supply in the State, support in peak demand management, and contribute to balancing the national grid.

The Project will be implemented through a Joint Venture Company between THDC India Limited and the
Govt. of Arunachal Pradesh. Government of India shall extend ?599.88 crore as budgetary support for
construction of roads, bridges and associated transmission line under enabling infrastructure besides
Central Financial Assistance of ?750 crore towards equity share of the State.

The State will receive 12% free power and an additional 1% earmarked for the Local Area Development
Fund (LADF), along with significant infrastructure development and socio-economic benefits for the
region.

There will be significant improvement in infrastructure in Namsai and Anjaw District of Arunachal Pradesh,
including the development of around 29 kilometres of roads and bridges, for the project which shall be
mostly available for local use. Local populace shall also be benefitted from many sorts of compensations,
employment and CSR activities.

Cabinet approves Investment Proposal for construction of 1720 MW Kamala Hydro Electric Project in
Kamle, Kra Daadi & Kurung Kumey Districts of Arunachal Pradesh with an outlay of Rs.26,069.50 crore

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has
approved investment of Rs.26,069.50 crore for construction of Kamala Hydro Electric Project (HEP) in
Kamle, Kra Daadi & Kurung Kumey Districts of Arunachal Pradesh. The estimated completion period for
the project is 96 months.

The project with an installed capacity of 1720 MW (8 x 210 MW & 1 x 40 MW) is expected to generate
6870 MU of energy. The power generated from the Project will strengthen power supply position in the
state of Arunachal Pradesh, support in peak demand management, contribute to national grid balancing
and will provide flood moderation benefit in the Brahmaputra valley. In addition to Kamala HEP, other
hydropower projects—Subansiri Lower (2000 MW), Dibang Multipurpose (2880 MW) is under
construction, and Etalin (3097 MW) is planned for development by NHPC Limited in Arunachal Pradesh.

The Kamala HEP will be implemented through a Joint Venture Company between NHPC Limited and the
Govt. of Arunachal Pradesh. Government of India shall extend Rs.4743.98 crore as budgetary support
towards flood moderation component and Rs.1340 crore as budgetary support for enabling infrastructure

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