Kalai-II Hydroelectric Project

  • 12 Apr 2026

In News:

The Cabinet Committee on Economic Affairs (CCEA) has sanctioned a massive investment of ?14,105.83 crore for the Kalai-II Hydro Electric Project (HEP). Located in the Anjaw district of Arunachal Pradesh, this project represents a critical milestone in India’s mission to harness the hydroelectric potential of the Brahmaputra river basin.

1. Technical Profile

The project is designed to be a high-capacity, efficient power generation unit with the following specifications:

  • River System: It is a run-of-river with pondage project situated on the Lohit River, a major tributary of the Brahmaputra.
  • Capacity: Total installed capacity of 1,200 MW, featuring a unique configuration of six units of 190 MW and one unit of 60 MW.
  • Energy Generation: Expected to contribute 4,852.95 million units of green energy annually to the national grid.
  • Engineering Scope: Includes the construction of a concrete gravity dam, diversion tunnels, pressure shafts, an underground powerhouse, and a tailrace tunnel.

2. Financial & Administrative Framework

The project follows a collaborative model between the Union and the State:

  • Implementation Agency: A Joint Venture (JV) between THDC India Limited (formerly Tehri Hydro Development Corporation) and the Government of Arunachal Pradesh.
  • Central Budgetary Support: * ?5.99 billion allocated for infrastructure (roads, bridges, and transmission lines).
    • ?7.5 billion provided as central financial assistance to cover the state's equity share.
  • Total Investment: ?14,105.83 crore.

3. Socio-Economic Impact

The Kalai-II project is envisioned as a catalyst for regional transformation:

  • State Revenue: Arunachal Pradesh will receive 12% free power once operational.
  • Community Development: An additional 1% free power is dedicated to the Local Area Development Fund (LADF) for regional welfare.
  • Infrastructure: The project will provide the remote Anjaw district with permanent roads and bridges, improving connectivity in a strategically sensitive border area.