India is rapidly moving towards clean energy, and the Kamala Hydroelectric Project in Arunachal Pradesh is a major step in this direction. This large hydropower project, recently approved by Public Investment Board, is set to generate renewable electricity, help control floods, and provide employment opportunities while supporting India’s goal of net-zero emissions by 2070.
The Kamala Hydroelectric Project, earlier called the Subansiri Middle Hydroelectric Project, is located on the Kamala River in the districts of Kamle, Kra Daadi, and Kurung Kumey in Arunachal Pradesh. It is a storage-based hydropower scheme with an integrated flood moderation component. The project is designed to produce about 6,870 million units of electricity every year, which will strengthen both the regional and national power grids.
This project will feature a 216-metre-high concrete gravity dam and an underground powerhouse. The construction is planned to be completed in 96 months (8 years). Besides electricity production, the storage system will regulate river flows and provide flood protection for downstream areas, especially in the Brahmaputra Valley, which often faces seasonal floods.
The Kamala project will follow a Build-Own-Operate-Transfer (BOOT) model. NHPC will hold a 74% equity stake, while the Government of Arunachal Pradesh will own the remaining 26%. The total project cost is estimated at ₹26,070 crore, with funding in a 70:30 debt-equity ratio. Central government support includes ₹1,340 crore for infrastructure and ₹4,744 crore for flood moderation. The state government will reimburse GST. The levelised tariff is projected at ₹5.97 per unit.
The project is expected to generate around 300 direct jobs and 2,500 contract jobs during peak construction. Beyond employment, it will improve infrastructure in remote districts, enhance electricity grid stability in the Northeast, and play a key role in India’s renewable energy transition.
Once completed, the Kamala Hydroelectric Project will significantly support India’s green energy targets. By generating clean electricity and managing floods, the project helps reduce carbon emissions and move the country closer to achieving its net-zero goal by 2070.
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