Arunachal Gets Boost as ₹26,000 Cr Kamala Hydropower Project Approved

The Public Investment Board (PIB) has formally approved the ambitious ₹ 26,000 crore Kamala Hydroelectric Project in Arunachal Pradesh, marking a major vault forward in India’s renewable energy structure and hydropower expansion. The decision to clear the Kamala hydel design underscores the government’s commitment to meeting the nation’s renewable energy pretensions, strengthening indigenous power generation, and supporting strategic climate targets.

This design, with a generation capacity of 1,720 megawatts (MW), is projected to be one of the most significant hydropower installations in the northeastern region, capable of producing nearly 6,870 million units of green electricity annually. In addition to its energy affair, the scheme is designed to deliver flood tide temperance benefits for downstream areas in the Brahmaputra receptacle, while creating substantial profitable exertion and employment in Arunachal Pradesh.

Strategic Importance and Project Overview

The Kamala Hydroelectric Project is positioned on the Kamala River, a significant influent of the Subansiri River, with conditioning gauging the sections of Kamle, Kra Daadi, and Kurung Kumey in Arunachal Pradesh. Structured as a storehouse-grounded hydropower action, this design not only focuses on clean energy generation but also integrates flood tide control mechanisms to alleviate the impact of seasonal thunderstorm surges along the Brahmaputra valley.

Under the figure-own-operate-transfer (charge) model, the design will be enforced through a common adventure in which NHPC Ltd will hold 74 equity, while the Government of Arunachal Pradesh will retain a 26 stake. The eight-time construction timeline reflects the scale and complexity of the undertaking, taking the construction of a 216-meter-high concrete levee and an underground power station to house the generation installations.

Backing for the design is planned on a 70/30 debt-to-equity basis, supported by central government subventions amounting to ₹ 1,340 crore for enabling structure and a fresh ₹ 4,744 crore specifically allocated for the flood tide temperance element. Likewise, the state government will give 100 payments of state goods and services duty (SGST) to further enhance fiscal viability.

Profitable and social benefits

Beyond clean energy products, the Kamala Hydroelectric Project is anticipated to deliver broad profitable and social benefits. The common adventure structure will grease indigenous pool participation, generating an estimated 300 direct jobs during construction and nearly 2,500 contract positions at peak exertion. Similar job creation is anticipated to boost original inflows and support ancillary diligence throughout northeastern India.

Also, Arunachal Pradesh is set to admit 12 free power from the design’s affair, valued at roughly ₹ 486 crore annually, which will bolster energy vacuity for original communities and diligence. A further donation of ₹ 40 crore per time is allocated for the Original Area Development Fund (LADF), aimed at backing community systems and structure advancements in the design region.

From a long-term financial perspective, the state government stands to earn significant returns. In the first time alone, it's projected to admit about ₹ 127 crore on its ₹ 750 crore equity donation through Central Financial Assistance, enhancing public finances for expanded development enterprise.

Enhancing India’s Climate and Energy Pretensions

The Kamala design aligns directly with India’s Net Zero by 2070 thing, reflecting the government’s broader strategy to transition toward low-carbon energy sources and reduce dependence on fossil fuels. With the capacity to induce renewable electricity at scale, the hydropower installation will be a precious addition to India’s clean energy portfolio and help reduce carbon emissions from the power sector.

In resemblance to hydropower capacity expansion, the Government of India also continues to invest in supporting structure, including a fresh ₹3,000 crore plan for power outfit testing installations approved in principle by the Ministry of Power. These installations, to be operated by the Central Power Research Institute (CPRI), will accelerate design prosecution by furnishing advanced testing for transmission and power system factors similar to mills, lines, and switchgear.

Addressing Challenges and Unborn Prospects

Large-scale structure systems of this nature generally face challenges, particularly concerning land accession and right-of-way access. Government officers have noted ongoing efforts to streamline these processes, ensuring fair compensation and speedier blessings to minimize construction detainments.

The success of the Kamala Hydroelectric Project is anticipated to catalyze further investment in hydropower and renewable structure across northeastern countries. Under government monitoring mechanisms like PRAGATI, several hydropower systems are being expedited to support public energy pretensions, with dozens of systems worth over ₹ 3 lakh crore formerly commissioned or under progress.

Eventually, this corner decision signals a new chapter for India’s renewable energy geography, balancing energy security, climate commitments, and indigenous development—demonstrating the multifaceted part hydropower can play in the nation’s sustainable growth story.