Rishikesh, April 8, 2026: In a significant move to boost the energy infrastructure in Arunachal Pradesh, the Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi, has sanctioned a substantial investment of Rs. 14,105.83 crore for the Kalai-II Hydro Electric Project. This initiative will be situated along the Lohit River in the Anjaw District and aims to complete within a span of 78 months.
The Kalai-II project is designed to have a total capacity of 1200 MW, distributed across seven units (six units of 190 MW each and one unit of 60 MW). It is anticipated to produce 4852.95 million units (MU) of electricity each year. Notably, it marks the first hydroelectric development in the Lohit Basin, which is expected to significantly enhance the region’s power availability, assist in managing demand during peak times, and help stabilize the national electricity grid.
The development and operationalization of the project will be carried out through a collaborative venture between THDC India Limited and the Government of Arunachal Pradesh. The Indian government will contribute Rs. 599.88 crore for the construction of essential infrastructure like roads and bridges, and an additional Rs. 750 crore as Central Financial Assistance for the state’s equity contribution.
Residents of Arunachal Pradesh will benefit from 12% of the power generated being supplied to them free of cost. Furthermore, an additional 1% of power will be allocated to the Local Area Development Fund to aid in regional development. The project is also set to foster significant socio-economic growth by improving local infrastructure, which includes approximately 29 kilometers of roads and bridges primarily for local use, and by providing various forms of compensation and job opportunities through corporate social responsibility initiatives.
This strategic development not only aims to meet the increasing power demands of Arunachal Pradesh but also contributes to sustainable growth and community development in the region.
