The Cabinet Committee on Economic Affairs, under the chairmanship of Prime Minister Shri Narendra Modi, has formally sanctioned a massive investment of ₹14,105.83 Crore for the development of the Kalai-II Hydro Electric Project.

Situated in the Anjaw District of Arunachal Pradesh, this ambitious venture marks the first significant hydroelectric initiative to be established within the Lohit river basin, announced PIB.

The project is designed with an impressive installed capacity of 1200 MW, utilising a configuration of six 190 MW units alongside a single 60 MW unit. Once operational, it is projected to generate approximately 4852.95 MU of energy on an annual basis. Beyond simple power generation, the facility is expected to play a crucial role in managing peak demand and providing essential stability to the national grid.

Implementation of the scheme will be managed through a dedicated Joint Venture Company formed between THDC India Limited and the Government of Arunachal Pradesh.

To ensure the project’s success, the Government of India has committed ₹599.88 crore in budgetary support specifically for enabling infrastructure, including the construction of vital roads, bridges, and the necessary transmission lines.

Furthermore, the central government is providing Central Financial Assistance amounting to ₹750 crore to cover the state’s equity share in the venture. The regional government stands to benefit significantly from the arrangement, receiving 12% of the generated power for free, with an additional 1% set aside for the Local Area Development Fund to support community growth.

The construction timeline for the Kalai-II project is estimated at 78 months, during which time substantial infrastructure improvements are expected in both the Namsai and Anjaw Districts. This includes the development of roughly 29 kilometres of new roads and bridges, the majority of which will remain accessible for use by the local population long after the project's completion.

Beyond the logistical enhancements, the local community is slated to experience a range of socio-economic advantages. Residents will benefit from various forms of financial compensation, direct and indirect employment opportunities, and a suite of Corporate Social Responsibility activities designed to uplift the region and foster long-term prosperity.

PIB