The Public Investment Board (PIB) has approved an expenditure of Rs 26,069.50 crore for the proposed 1,720 MW Kamala hydroelectric project in Arunachal Pradesh. Official sources said the approval was given on January 8, clearing a major hurdle for one of the largest hydropower projects planned in the state. Once completed, the project is expected to generate about 6,869.92 million units of electricity every year. Officials said the power generated will be clean and renewable, and will support India’s long-term goal of reducing carbon emissions and achieving Net Zero by 2070.
The Kamala project is a storage-based hydropower scheme with a built-in flood moderation component. It will come up on the Kamala River, which is a major tributary of the Subansiri River. The project area will span across parts of Arunachal Pradesh, covering Kamle, Kra Daadi and Kurung Kumey districts. As part of the project, a 216-metre-high concrete gravity dam will be constructed, along with an underground powerhouse. The construction period has been fixed at eight years. Apart from electricity generation, the project is expected to help reduce flood impact in the Brahmaputra Valley. During heavy monsoon rainfall, the storage capacity of the dam is expected to provide downstream flood relief.
The project will be implemented under the Build-Own-Operate-Transfer model through a joint venture. NHPC will hold a 74 per cent stake, while the Government of Arunachal Pradesh will own the remaining 26 per cent. The total project cost includes interest during construction and financing charges amounting to Rs 4,815.64 crore. Funding has been structured with a debt-equity ratio of 70:30. The project will also receive central government support, including Rs 1,340 crore for enabling infrastructure and Rs 4,743.98 crore specifically for the flood moderation component. The state government has agreed to reimburse 100 per cent of the state GST. Based on these factors, the levelised tariff has been estimated at Rs 5.97 per unit.
