Kamala Hydroelectric Project Approved in Arunachal Pradesh

The Public Investment Board has approved the ₹26,070-crore Kamala Hydroelectric Project in Arunachal Pradesh, marking a major push towards India’s renewable energy expansion. With an installed capacity of 1,720 MW, the project is expected to play a significant role in meeting the country’s green energy targets and supporting its commitment to achieve net-zero emissions by 2070.

Project Overview and Location

The Kamala Hydroelectric Project, earlier known as the Subansiri Middle Hydroelectric Project, is a storage-based scheme with an integrated flood moderation component. It is proposed on the Kamala River and will be located across Kamle, Kra Daadi and Kurung Kumey districts of Arunachal Pradesh. The project is designed to generate nearly 6,870 million units of electricity annually, contributing substantially to the regional and national power grid.

Technical Features and Construction Plan

The project involves the construction of a 216-metre-high concrete gravity dam and an underground powerhouse. The scheduled completion period is 96 months from the start of construction. Apart from electricity generation, the storage capacity will help in regulating river flows, offering flood relief to downstream areas, particularly the Brahmaputra Valley, which frequently faces seasonal flooding.

Investment Structure and Financial Support

The project will be implemented on a build-own-operate-transfer basis through a joint venture company. NHPC will hold a 74 per cent equity stake, while the Government of Arunachal Pradesh will hold the remaining 26 per cent. The completion cost is estimated at ₹26,069.5 crore, with financing proposed in a 70:30 debt-equity ratio. Central support includes ₹1,340 crore for enabling infrastructure and ₹4,744 crore for the flood moderation component, along with full reimbursement of state GST by the state government. The levelised tariff is estimated at ₹5.97 per unit.

Imporatnt Facts for Exams

• The Kamala Hydroelectric Project has an installed capacity of 1,720 MW.
• It is a storage-based hydropower project with a flood moderation component.
• The project is located in Kamle, Kra Daadi and Kurung Kumey districts of Arunachal Pradesh.
• NHPC holds a 74 per cent equity stake in the project.

Employment and Regional Impact

During the peak construction phase, the project is expected to generate around 300 direct jobs and nearly 2,500 contract jobs. Beyond employment, it is expected to boost infrastructure development in remote districts, enhance grid stability in the Northeast, and strengthen India’s long-term renewable energy transition strategy.