Arunachal Pradesh Kamala Hydro Project Gets Rs 26,000 Crore Investment Nod

ENERGY

Overview

The Public Investment Board (PIB) approved Rs 26,069.50 crore for Arunachal Pradesh's 1720 MW Kamala hydro project. This storage-based scheme on the Kamala River will generate 6,869.92 MU of green energy annually, aid India's Net Zero targets, and provide flood moderation in the Brahmaputra valley. NHPC leads the joint venture, anticipating significant regional development and job creation.

Kamala Hydro Project Gets Rs 26,069 Crore Green Signal

The Public Investment Board (PIB) on Thursday approved an expenditure of Rs 26,069.50 crore for the proposed 1720 MW Kamala hydro project in Arunachal Pradesh. This significant infrastructure development will be implemented by National Hydroelectric Power Corporation (NHPC) in a joint venture.

Green Energy and Flood Control Aims

Upon completion, the project is projected to generate 6,869.92 million units (MU) of green energy annually. This aligns with the Government of India's energy transition initiatives and its 2070 Net Zero target. The Kamala project, situated on the Kamala River, is a storage-based scheme designed with a flood moderation component.

Project Scope and Timeline

The scheme involves constructing a 216-meter high concrete gravity dam and an underground powerhouse. It is scheduled for completion over 8 years. Beyond power generation, it aims to provide crucial flood relief to the Brahmaputra valley.

Financial Structure and Ownership

Implemented on a Build-Own-Operate-Transfer (BOOT) basis, the project sees NHPC holding 74% equity, with the Government of Arunachal Pradesh (GoAP) owning 26%. The total cost includes Rs 4,815.64 crore for interest during construction (IDC) and financing charges. The project is to be financed with a 70:30 debt-equity ratio, supported by government grants and GoAP's SGST reimbursement.

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