MC EXCLUSIVE Public Investment Board approves 1720MW Kamala Hydroelectric Project: Sources

Kamala river is a major tributary of the Subansiri River (above)

• 1720 MW Kamala Hydroelectric Project in Arunachal Pradesh approved by PIB
• Project to produce 6869.92 MU green energy yearly, support Brahmaputra flood relief
• NHPC, Arunachal Govt to jointly implement Rs 26069.5 crore project

Did our AI summary help?

Public Investment Board (PIB) has approved the 1720 MW Kamala Hydroelectric Project, sources said. The Kamala Hydroelectric Project (1720MW) is a storage-based scheme with a flood moderation component, proposed on the Kamala river (a major tributary of the Subansiri River), located in Kamle, Kra Daadi and Kurung Kumey districts of Arunachal Pradesh. The project involves construction of a 216-metre-high concrete gravity dam and an underground powerhouse with a scheduled completion period of 96 months.

The project will generate 6,869.92 MU of green energy annually on completion, thereby contributing to the Government of India’s energy transition initiatives and its Net Zero target by 2070. In addition to power generation, the project also envisaged to provide flood relief in the Brahmaputra valley.

According to the sources, the project will be implemented on Build-Own-Operate-Transfer (BOOT) basis through a Joint Venture company with 74% equity by NHPC and 26% by Govt of Arunachal Pradesh (GoAP).

Sources added that the completion cost of the project is estimated at Rs 26,069.50 crore, including IDC and Financing Charges of Rs 4,815.64 crore. The project is proposed to be financed with a debt-equity ratio of 70:30, supported by Government of India grants for enabling infrastructure (Rs 1,340 crore) and flood moderation component (Rs 4,743.98 crore), along with 100% SGST reimbursement by GoAP. Considering these aspects, the levelized tariff of the project is Rs 5.97/unit.

Key benefits from the project include flood moderation in the Brahmaputra basin, 12% free power to GoAP yielding about Rs 486 crore annually, contribution of Rs 40 crore per year to Local Area Development Fund (LADF), regional infrastructure development, and significant employment generation (about 300 direct jobs and 2,500 contract workers during peak construction period). Apart from the above, the state government will earn a first-year return of about Rs 127 crore on the Rs 750 crore Central Financial Assistance (CFA) included in its 26% equity contribution.