Rishikesh, April 8: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved an investment of ₹14,105.83 crore for the construction of the 1,200 MW Kalai-II Hydroelectric Project on the Lohit river in Anjaw district of Arunachal Pradesh.
The project will have an installed capacity of 1,200 MW, comprising six units of 190 MW each and one unit of 60 MW. It is expected to generate about 4,852.95 million units (MU) of electricity annually. The estimated completion period for the project is 78 months.
Kalai-II will be the first hydroelectric project in the Lohit basin and is expected to strengthen power supply in Arunachal Pradesh while helping manage peak electricity demand and support grid balancing at the national level.
The project will be implemented through a joint venture company formed by THDC India Limited and the Government of Arunachal Pradesh. The Government of India will provide ₹599.88 crore as budgetary support for enabling infrastructure, including roads, bridges and associated transmission lines. In addition, the Centre will extend central financial assistance of ₹750 crore towards the state government’s equity share.
Under the arrangement, Arunachal Pradesh will receive 12% free power from the project, along with an additional 1% earmarked for the Local Area Development Fund.
The project is also expected to boost infrastructure development in Namsai and Anjaw districts, including the construction of around 29 km of roads and bridges, most of which will remain available for local use.
Local communities are expected to benefit through compensation, employment opportunities and corporate social responsibility initiatives associated with the project.
