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CCEA Approves ₹14,105 Crore Kalai-II Hydropower Project

  • 09 Apr 2026

On 8th April 2026, the Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, approved the ₹14,105.83 crore Kalai-II Hydro Electric Project on the Lohit River in Arunachal Pradesh.

Key Points

  • Project Details:
    • Location: Lohit River, Anjaw district, Arunachal Pradesh.
    • Installed capacity: 1,200 MW.
    • Comprises 6 units of 190 MW and 1 unit of 60 MW.
  • Power Generation:
    • Expected annual generation: 4,852.95 million units.
    • Project completion timeline: 78 months.
  • Strategic Importance:
    • First major hydropower project in the Lohit Basin.
    • Strengthens power supply in Arunachal Pradesh.
    • Helps in peak demand management and grid balancing.
  • Implementation Structure:
    • Joint venture between THDC India Limited and Government of Arunachal Pradesh.
    • Central support includes ₹599.88 crore for infrastructure.
    • ₹750 crore assistance for state’s equity share.
  • Benefits to Arunachal Pradesh:
    • 12% free power from the project.
    • Additional 1% for Local Area Development Fund.
  • Infrastructure Development:
    • Construction of ~29 km roads and bridges.
    • Improves connectivity in Namsai and Anjaw districts.
  • Socio-Economic Impact:
    • Employment opportunities for local communities.
    • Compensation and CSR initiatives.
    • Boost to regional development.