The Cabinet Committee on Economic Affairs has approved investment of ₹14,105.83 crore for the construction of the Kalai-II Hydro Electric Project on the Lohit river in Anjaw district of Arunachal Pradesh. The 1,200 MW project is expected to generate 4,852.95 million units of electricity annually and will be completed in 78 months. It is the first hydroelectric project in the Lohit basin and is expected to improve power availability, support peak demand management, and help balance the national grid.
Project Features
- The project will have an installed capacity of 1,200 MW.
- It will comprise 6 units of 190 MW and 1 unit of 60 MW.
- Annual generation is estimated at 4,852.95 MU.
- It is located on the Lohit river in Arunachal Pradesh.
Implementation and Funding
- The project will be implemented through a joint venture between THDC India Limited and the Government of Arunachal Pradesh.
- The Centre will provide ₹599.88 crore as budgetary support for roads, bridges, and transmission line infrastructure.
- It will also provide ₹750 crore as central financial assistance towards the State’s equity share.
- The State will receive 12% free power and 1% for the Local Area Development Fund.
Regional and Economic Impact
- The project will improve infrastructure in Namsai and Anjaw districts.
- Around 29 kilometres of roads and bridges will be developed, with much of it available for local use.
- The project is expected to create employment opportunities and support CSR activities.
- It may also bring compensation-linked and socio-economic benefits to local communities.
Strategic Significance
- The project strengthens Arunachal Pradesh’s hydropower potential.
- It supports India’s broader clean energy and grid stability goals.
- It adds to the development of power infrastructure in the North-East.
- It is expected to aid long-term regional connectivity and energy security.