By Firstdespatch Desk Apr 09, 2026
The Cabinet Committee on Economic Affairs (CCEA), chaired by Hon’ble Prime Minister Shri Narendra Modi, has approved an investment of ₹26,069.50 crore for the construction of the 1720 MW Kamala Hydro Electric Project (HEP) in the Kamle, Kra Daadi and Kurung Kumey districts of Arunachal Pradesh. The estimated completion period of the project is 96 months. The Kamala HEP, with an installed capacity of 1720 MW (8 x 210 MW + 1 x 40 MW), is expected to generate 6,870 million units (MU) of clean energy annually. The project will help strengthen the power supply position in Arunachal Pradesh, support peak demand management, contribute to national grid balancing and provide flood moderation benefits in the Brahmaputra valley.
The project will be implemented through a Joint Venture Company between NHPC Limited and the Government of Arunachal Pradesh. The Government of India will provide ₹4,743.98 crore as budgetary support towards the flood moderation component and ₹1,340 crore for enabling infrastructure, including roads, bridges and associated transmission systems. In addition, ₹750 crore will be provided as Central Financial Assistance (CFA) towards the State Government’s equity share.
On this occasion, Shri Bhupender Gupta, CMD, NHPC, expressed his gratitude to the Government of India, Hon’ble Prime Minister Shri Narendra Modi and the Government of Arunachal Pradesh for their continued support and cooperation in taking the Kamala Hydroelectric Project forward. He said that the approval of the project is of great significance for the hydropower sector and reflects the country’s sustained focus on clean and sustainable energy development. He added that the project will play an important role in strengthening energy security, enhancing grid stability and contributing to the socio-economic development of Arunachal Pradesh through infrastructure creation, employment generation and local area development.
The State of Arunachal Pradesh will receive 12% free power, along with an additional 1% free power earmarked for the Local Area Development Fund (LADF). The project is also expected to bring substantial socio-economic benefits to the region through infrastructure development, improved connectivity, employment generation and local area development. The region is also expected to benefit from the creation of essential community infrastructure such as hospitals, schools and marketplaces, to be supported through dedicated project funds. In addition, the local populace is expected to benefit through compensation, employment opportunities and CSR initiatives associated with the project.
Beside Kamala HEP, three major hydropower projects – Subansiri Lower (2000 MW), Dibang Multipurpose (2880 MW) and Etalin (3097 MW) – being developed by NHPC Limited in Arunachal Pradesh and Assam. Subansiri Lower HEP (2000 MW) is at an advanced stage with 750 MW already commissioned and remaining capacity is expected to be commissioned shortly by December 2026.