Cabinet approves 1,720 MW hydro-electric project in Arunachal for Rs 26,069 crore

New Delhi, April 8 The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday approved investment of Rs 26,069.50 crore for the construction of the Kamala Hydro Electric Project (HEP) in Kamle, Kra Daadi, and Kurung Kumey districts of Arunachal Pradesh.

The estimated completion period for the project is 96 months, a Cabinet note said.

There will be significant improvement in the infrastructure in Kamle, Kra Daadi, and Kurung Kumey districts, including the development of around 196 kms of roads and bridges, for the project, which will be mostly available for local use, the note said.

The district will also benefit from the construction of essential infrastructure, such as hospitals, schools, and marketplaces, etc., to be financed from dedicated project funds of Rs 8 crore. The local populace will also benefit from compensation, employment, and CSR activities.

The project with an installed capacity of 1,720 MW (8x210 MW and 1x40 MW) is expected to generate 6,870 MU of energy.

The power generated from the project will strengthen the power supply position in the state of Arunachal Pradesh, support peak demand management, contribute to national grid balancing and provide flood moderation benefits in the Brahmaputra valley.

In addition to Kamala HEP, other hydropower projects -- Subansiri Lower (2,000 MW), Dibang Multipurpose (2,880 MW) -- are under construction, and Etalin (3,097 MW) is planned for development by NHPC Limited in Arunachal Pradesh, according to a statement.

The Kamala HEP will be implemented through a Joint Venture Company between NHPC Limited and the Arunachal Pradesh government.

The government will extend Rs 4,743.98 crore as budgetary support towards the flood moderation component and Rs 1,340 crore as budgetary support for enabling infrastructure -- construction of roads, bridges, and associated transmission system, besides Central Financial Assistance of Rs 750 crore towards the equity share of the state.

Notably, the state will receive 12 per cent free power and an additional 1 per cent earmarked for the Local Area Development Fund (LADF), along with significant infrastructure development and socio-economic benefits for the region.

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