Massive Investment for Arunachal’s Kalai-II Hydro Project Approved

The Indian Cabinet Committee on Economic Affairs, led by Prime Minister Shri Narendra Modi, has given the green light for a substantial investment of Rs. 14,105.83 crore aimed at developing the Kalai-II Hydro Electric Project (HEP) on the Lohit River in Arunachal Pradesh’s Anjaw District. This ambitious project is expected to take around 78 months to complete.

With a total installed capacity of 1200 MW—comprising six units of 190 MW and one unit of 60 MW—the Kalai-II project is projected to produce approximately 4,852.95 million units (MU) of energy each year. As the inaugural hydroelectric project in the Lohit Basin, this initiative not only promises to enhance the state’s power supply but also aids in managing peak demand and contributes significantly to the stability of the national power grid.

Joint Venture and Government Support

The execution of the project will be carried out through a Joint Venture Company comprising THDC India Limited and the Government of Arunachal Pradesh. To facilitate its development, the Government of India will provide budgetary support totaling ₹599.88 crore, which is earmarked for the construction of essential infrastructure such as roads, bridges, and transmission lines. Additionally, a Central Financial Assistance of ₹750 crore will be allocated towards the state’s equity share.

Local Benefits and Infrastructure Development

The local population stands to gain significantly from this project. The state will receive 12% of the generated power free of charge, with an extra 1% reserved for the Local Area Development Fund (LADF). This initiative is poised to usher in robust infrastructure improvements across Namsai and Anjaw Districts, including approximately 29 kilometers of newly constructed roads and bridges, primarily intended for local accessibility.

Moreover, the project is set to yield considerable socio-economic advantages for the region. The local communities will benefit from various compensation packages, job opportunities, and corporate social responsibility (CSR) initiatives aimed at improving their quality of life. Overall, the Kalai-II Hydro Electric Project not only emphasizes green energy production but also heralds a new era of development and empowerment for the residents of Arunachal Pradesh.


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Shalini Singh

Shalini Singh is a journalist specializing in Indian politics and national affairs. With a keen eye for political developments, policy reforms, and democratic discourse, she brings clarity and insight to every piece she writes. Shalini is also associated with ANB National, where she reports on key political narratives and legislative… More »
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