New Delhi, April 8, 2026
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 1,720 MW Kamala Hydroelectric Project (HEP) in Arunachal Pradesh’s Kamle, Kra Daadi and Kurung Kumey districts.
The project, which will be developed over an estimated 96-month timeline, is expected to significantly strengthen the Northeast’s energy infrastructure while also contributing to national grid stability and flood moderation in the Brahmaputra basin.
The installed capacity of 1,720 MW will comprise 8 units of 210 MW each and 1 unit of 40 MW, with an estimated annual generation of 6,870 million units (MU) of electricity.
According to the Cabinet decision, the power generated from the Kamala HEP will improve electricity supply within the state, support peak demand management, contribute to balancing the national grid, and assist in flood control across the Brahmaputra valley.
The project will be implemented through a joint venture company between NHPC Limited and the Government of Arunachal Pradesh.
As part of the financing structure, the Government of India will provide:
- ₹4,743.98 crore as budgetary support for the flood moderation component
- ₹1,340 crore for enabling infrastructure, including roads, bridges and associated transmission systems
- ₹750 crore as central financial assistance towards the state’s equity share
The state will also receive 12% free power, with an additional 1% power earmarked for the Local Area Development Fund (LADF), ensuring long-term benefits for the region.
A major infrastructure push is expected alongside the hydropower project, including the development of around 196 kilometres of roads and bridges, much of which will remain available for local use. The districts are also set to benefit from the creation of essential social infrastructure such as hospitals, schools and market facilities, funded through a dedicated ₹8 crore project fund.
The local population is expected to gain through compensation, employment generation and CSR-led community development initiatives, adding a socio-economic dimension to the strategic energy project.
The approval further expands NHPC’s hydropower footprint in Arunachal Pradesh, where the 2,000 MW Subansiri Lower and 2,880 MW Dibang multipurpose projects are already under construction, while the 3,097 MW Etalin project is also in the pipeline.
