Itanagar: The Public Investment Board (PIB) has approved an expenditure of Rs 26,069.50 crore for the proposed 1720 MW Kamala hydro project in Arunachal Pradesh.
Chief Minister Pema Khandu said the approval of the 1,720 MW Kamala Hydroelectric Project marks a significant milestone for Arunachal Pradesh, with the project expected to play a key role in India’s energy transition and regional development.
“The approval of the 1720 MW Kamala Hydroelectric Project is a landmark moment for Arunachal Pradesh and the nation. This green, storage-based project will strengthen India’s energy transition and advance the Net Zero 2070 goal, while also providing flood moderation in the Brahmaputra basin,” Khandu said in a post on X.
Under the project framework, the state government will receive 12 per cent free power, translating into an estimated annual revenue of around Rs 486 crore.
He further added, “The project will deliver 12% free power to GoAP, generating about Rs 486 crore annually, contribute Rs 40 crore per year to LADF, boost regional infrastructure, and create large-scale employment with 300 direct jobs and 2,500 contract workers during peak construction. The State will also earn a first-year return of Rs 127 crore on its equity backed by Central Financial Assistance.”
The Kamala hydroelectric project is a storage-based scheme with a flood moderation component, proposed on the Kamala River (a major tributary of the Subansiri River), located in Kamle, Kra Daadi and Kurung Kumey districts of Arunachal Pradesh.
The project involves the construction of a 216-metre-high concrete gravity dam and an underground powerhouse with a scheduled completion period of 8 years. In addition to power generation, the project also envisages providing flood relief in the Brahmaputra valley.
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The project will be implemented on a Build-Own-Operate-Transfer (BOOT) basis through a joint venture with 74 per cent equity with NHPC and 26 per cent owned by the Government of Arunachal Pradesh. The completion cost of the project is estimated at Rs 26,069.50 crore, including IDC and financing charges of Rs 4,815.64 crore.
