The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday approved an investment of ₹14,105.83 crore for the construction of the 1,200 MW Kalai-II Hydro Electric Project on the Lohit river in Arunachal Pradesh’s Anjaw district.
According to the government, the project will have an installed capacity of 1,200 MW, comprising six units of 190 MW each and one unit of 60 MW. It is expected to generate around 4,852.95 million units of electricity annually and is slated for completion within 78 months.
The Kalai-II project, the first major hydropower development in the Lohit Basin, is expected to strengthen power supply in Arunachal Pradesh, support peak demand management and aid in balancing the national grid.
It will be implemented through a joint venture between THDC India Limited and the Government of Arunachal Pradesh, with the central government providing Rs 599.88 crore as budgetary support for enabling infrastructure such as roads, bridges and transmission lines, along with Rs 750 crore as financial assistance towards the state’s equity share.
Arunachal Pradesh will receive 12 percent free power from the project along with an additional 1 percent earmarked for the Local Area Development Fund. The development is also expected to bring significant infrastructure improvements and socio-economic benefits to the region.
Around 29 kilometres of roads and bridges will be constructed in Namsai and Anjaw districts as part of the enabling infrastructure, most of which will remain available for local use. Local communities are expected to benefit from compensation payments, employment opportunities and corporate social responsibility (CSR) activities during the project’s implementation.
