The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi, has approved an investment of USD 1.52 billion for the construction of the Kalai-II Hydro Electric Project on the Lohit river in Anjaw District of Arunachal Pradesh. The project, with an installed capacity of 1200 MW, is expected to be completed within 78 months.

Project Specifications and Capacity

The Kalai-II Hydro Electric Project will feature an installed capacity of 1200 MW, comprising six units of 190 MW each and one unit of 60 MW. The project is expected to generate 4,852.95 MU of energy annually. As the first hydro project in the Lohit Basin, the facility will strengthen power supply in Arunachal Pradesh, support peak demand management, and contribute to balancing the national grid.

Implementation Structure and Financial Support

The project will be implemented through a Joint Venture Company between THDC India Limited and the Government of Arunachal Pradesh. The Government of India will provide USD 64.89 million as budgetary support for the construction of roads, bridges, and associated transmission lines under enabling infrastructure.

Additionally, the central government will extend Central Financial Assistance of USD 81.13 million towards the equity share of the state.

The state of Arunachal Pradesh will receive 12% free power from the project and an additional 1% earmarked for the Local Area Development Fund (LADF). These arrangements come alongside significant infrastructure development and socio-economic benefits for the region.

Infrastructure Development and Local Benefits

The project will result in significant improvement in infrastructure in the Namsai and Anjaw districts of Arunachal Pradesh. The development includes the construction of around 29 kilometers of roads and bridges, which will be mostly available for local use. The local population will benefit from various forms of compensation, employment opportunities, and Corporate Social Responsibility (CSR) activities associated with the project.

The infrastructure improvements are designed to serve both the project's operational needs and the broader development requirements of the local communities in the affected districts.

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