The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi has approved investment of ₹26,069.50 crore for construction of Kamala Hydro Electric Project (HEP) in Kamle, Kra Daadi and 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 6,870 MU of energy. The power generated from the project will strengthen power supply position in the state, 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 (2,000 MW), Dibang Multipurpose (2,880 MW) is under construction, and Etalin (3,097 MW) is planned for development by NHPC Ltd in Arunachal Pradesh.


The Kamala HEP will be implemented through a joint venture company between NHPC Ltd and the Government of Arunachal Pradesh. The Government of India shall extend ₹4,743.98 crore as budgetary support towards flood moderation component and ₹ 1,340 crore as budgetary support for enabling infrastructure such as construction of roads, bridges and associated transmission system, besides central financial assistance of ₹750 crore towards the equity share of the state.


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