The Public Investment Board has approved the Rs 26,070-crore Kamala Hydroelectric Project in Arunachal Pradesh. The 1,720 MW storage-based scheme is designed to generate green power, support India’s energy transition, and provide flood moderation benefits in the Brahmaputra valley. The project was earlier known as the Subansiri Middle Hydroelectric Project.
Project Overview
The project will be built on the Kamala River across Kamle, Kra Daadi and Kurung Kumey districts. It includes a 216-metre-high concrete gravity dam and an underground powerhouse. The scheduled construction period is 96 months. The project is expected to generate about 6,870 million units of electricity annually.
Implementation Model and Funding
The scheme will be implemented on a build-own-operate-transfer basis through a joint venture company. NHPC will hold 74% equity, while the Government of Arunachal Pradesh will hold 26%. The completion cost is estimated at Rs 26,069.5 crore. Financing will follow a 70:30 debt-equity ratio. Support will include Centre grants for enabling infrastructure and flood moderation, along with reimbursement of state GST by the state government.
Energy and Flood Benefits
The project is for both power generation and disaster management. Its storage-based design includes a flood moderation component, which is expected to help reduce flood pressure in the Brahmaputra valley. The levelised tariff is estimated at Rs 5.97 per unit, making it a major hydropower investment in the North-East.
Employment and Strategic Importance
The project is expected to create around 300 direct jobs and 2,500 contract jobs during peak construction. It also supports India’s broader clean energy goals and the target of net-zero emissions by 2070.
Last Modified: April 25, 2026