Cabinet Clears ₹14,105 Crore Kalai-II Hydropower Project in Arunachal Pradesh
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved an investment proposal of ₹14,105.83 crore for the construction of the 1,200 Megawatt (MW) Kalai-II Hydro Electric Project in Anjaw district of Arunachal Pradesh. Situated on the Lohit River, a major tributary of the Brahmaputra, Kalai-II marks the first major hydroelectric project to be taken up in the Lohit River basin.
The mega infrastructure initiative will be executed through a Joint Venture Company formed between THDC India Limited (a central public sector enterprise) and the Government of Arunachal Pradesh, with an estimated construction timeline of 78 months (6.5 years). The project features seven generating units (six 190 MW units and one 60 MW unit) and is projected to generate roughly 4,852.95 million units (MU) of green electricity annually. To enable seamless implementation, the Central Government will provide ₹599.88 crore as budgetary support for supporting infrastructure—including 29 kilometers of roads, bridges, and transmission lines—alongside ₹750 crore in Central Financial Assistance toward the state's equity contribution.
Once operational, the project will supply clean renewable energy to the national grid, assist in peak power demand management, and drive substantial socio-economic development across northeastern border regions. Under the agreement, Arunachal Pradesh will receive 12% free power, with an additional 1% allocated to a Local Area Development Fund for community welfare. The construction of enabling infrastructure will also significantly enhance road connectivity for remote local communities in Anjaw and Namsai districts.
