The Cabinet Committee on Economic Affairs has approved an investment of Rs 260,695 mn for the Kamala Hydro Electric Project in Kamle, Kra Daadi and Kurung Kumey districts of Arunachal Pradesh. The project will have an installed capacity of 1720 megawatt (MW) and is expected to generate 6870 MU of energy. The estimated completion period is 96 months and the project will be implemented through a joint venture between NHPC Limited and the government of Arunachal Pradesh.

The power produced is intended to strengthen supply in Arunachal Pradesh, aid peak demand management and support national grid balancing while offering flood moderation benefits in the Brahmaputra valley. Central budgetary support comprises Rs 47,439.8 mn for flood moderation, Rs 13,400 mn for enabling infrastructure such as roads, bridges and associated transmission works, and Rs 7,500 mn as central financial assistance towards the state equity share. Dedicated project funds of Rs 80 mn will finance essential community infrastructure.

The state will receive 12 per cent free power and an additional one per cent set aside for a Local Area Development Fund to support socio-economic initiatives in host districts. The project will deliver about 196 km of roads and bridges for local use and provide compensation and employment opportunities for affected communities. Corporate social responsibility measures and other community benefits will be financed from project resources.

NHPC Limited is also developing Subansiri Lower, Dibang Multipurpose and Etalin in the north east, with capacities of 2000 MW, 2880 MW and 3097 MW respectively. Subansiri Lower has 750 MW commissioned with the remaining capacity expected by December 2026. All projects will allocate 12 per cent free power to host states and one per cent for local development through a Local Area Development Fund, reinforcing regional energy infrastructure and development.