The Centre has approved a major hydropower project in Arunachal Pradesh, with the Cabinet Committee on Economic Affairs clearing an investment of ₹26,069.50 crore for the 1,720 MW Kamala Hydroelectric Project. The decision is seen as an important step to strengthen India’s renewable energy capacity and improve power infrastructure in the Northeast.
The project will be developed across Kamle, Kra Daadi and Kurung Kumey districts. Officials said the construction is expected to be completed within eight years. Once finished, the project is likely to generate around 6,870 million units of electricity every year. This is expected to support clean energy supply and help manage peak power demand across the national grid.
According to officials, the project will also help in controlling floods in the Brahmaputra basin, which often faces seasonal flooding. It will also improve grid stability by providing hydropower support during high demand periods.
The project will be implemented through a joint venture between NHPC Limited and the Arunachal Pradesh government. The Centre has committed ₹4,743.98 crore for flood control works and ₹1,340 crore for building roads, bridges and transmission lines linked to the project. In addition, ₹750 crore has been set aside to support the state’s share in the project.
Officials said the project is expected to bring development benefits to the region. It is likely to create jobs during both construction and operational stages. The state will also receive 12 per cent free power from the project, along with an extra one per cent for local area development.
The approval comes at a time when the government is focusing on expanding hydropower in the Northeast. Major projects like the 2,000 MW Subansiri Lower Hydroelectric Project and the 2,880 MW Dibang Multipurpose Project are already under development. Officials said these projects are important for improving India’s renewable energy mix. The Subansiri project has already started partial operations and is expected to be fully completed by the end of 2026.
