Arunachal Pradesh has one of the highest hydropower potentials in India. Therefore, the Government of India is accelerating large hydroelectric projects in the Northeast. In this context, the Public Investment Board has approved ₹26,050 crore for the 1,720 MW Kamala Hydroelectric Project. As a result, the project strengthens clean energy infrastructure and improves flood management in the Brahmaputra basin, while supporting India’s net-zero emission target by 2070.

Location of Kamala Hydroelectric Project and River System:

The Kamala Hydroelectric Project is located in Kamle, Kra Daadi, and Kurung Kumey districts of Arunachal Pradesh.

• The project is built on the Kamala River, a major tributary of the Subansiri River.
• The Subansiri is one of the largest tributaries of the Brahmaputra, making the project hydrologically significant.
• Due to its upstream Himalayan location, the project plays a critical role in flow regulation and flood moderation downstream in Assam’s Brahmaputra valley.

What are the Technical Characteristics of the Project?

Nature of the Project:

• Type: Storage-based hydroelectric project
• Unlike run-of-the-river projects, storage-based projects allow controlled release of water, enhancing both power generation and flood moderation.

Major Structural Features:

• Dam Type: Concrete gravity dam
• Dam Height: 216 metres
• Powerhouse: Underground
• Installed Capacity: 1,720 MW
• Construction Period: 8 years

The underground powerhouse design reduces surface disturbance and improves long-term structural stability in seismically sensitive Himalayan terrain.

Implementation Model and Institutional Framework of Kamal Hydroelectric Project:

BOOT Model:

The project is being implemented under the Build–Own–Operate–Transfer (BOOT) model.

• Under this model, the developer builds and operates the project for a fixed concession period.
• After the concession period, ownership is transferred back to the government.
• Most importantly, this model reduces the immediate financial burden on the state while ensuring long-term public ownership.

Equity Structure:

• NHPC: 74% equity stake
• Government of Arunachal Pradesh: 26% equity stake

This structure ensures central technical expertise and funding. At the same time, it will promote state participation in decision-making and revenue sharing.

Financial Structure and Cost Components:

The project’s financial structure has been designed in line with best practices for large infrastructure initiatives. The total project cost is estimated at ₹26,050 crore. It will be financed through a debt–equity ratio of 70:30. This standard and widely accepted model will ensure financial viability while maintaining an optimal balance between borrowed funds and equity investment.

Government of India Support:

To strengthen the project’s viability, the Government of India has provided targeted financial support through multiple components. This includes ₹1,340 crore from the Infrastructure Enabling Fund and ₹4,743.98 crore for the Flood Moderation Component. In addition, Interest During Construction (IDC) and other financing charges amounting to ₹4,815.64 crore have been factored into the project’s financial framework. Collectively, these support measures help reduce tariff pressure. Moreover, these measures enhance financial sustainability and boost investor confidence in large-scale hydropower projects.

Flood Moderation and Disaster Management Role:

One of the most critical aspects of the Kamala HEP is its flood moderation function.

• Firstly, the project helps regulate monsoon flows in the Brahmaputra basin.
• Secondly, by storing excess water during heavy rainfall, it reduces the intensity of floods in downstream Assam.
• Moreover, flood moderation is particularly important as the Brahmaputra basin is highly flood-prone and climate-vulnerable.

Economic and Fiscal Benefits to Arunachal Pradesh:

Free Power Provision:

• 12% free power is allocated to the state government. Moreover, this will reduce power procurement costs and strengthen state energy security.

Revenue Generation:

• The state is expected to earn ₹486 crore annually from the project.

Local Area Development Fund (LADF):

• Under the Local Area Development Fund (LADF), there is an annual allocation of ₹40 crore to support local development initiatives. The fund is utilised for building and improving roads and bridges. 
• Moreover, it aims at strengthening health and education infrastructure, and promoting skill development and livelihood projects. 
• This targeted investment ensures inclusive development and tangible socio-economic benefits for remote and tribal districts.

Renewable Energy and Climate Commitments:

In terms of renewable energy and climate commitments, the Kamala Hydroelectric Project (HEP) makes a direct and meaningful contribution to India’s clean energy transition.

• First, it enhances the share of clean, non-fossil fuel energy in the national power mix.
• Second, it supports India’s Nationally Determined Contributions (NDCs) under global climate frameworks.
• Third, the project aligns with India’s long-term goal of achieving net-zero emissions by 2070. 
• Moreover, hydropower plays a critical role in providing grid stability. Therefore, it will complement intermittent renewable sources such as solar and wind energy and ensure a reliable power supply.

Strategic Importance for the Northeast:

From a regional development and strategic perspective, the project holds significant importance for the Northeast. 

• Firstly, it strengthens the energy infrastructure in a strategically sensitive border state like Arunachal Pradesh. 
• Secondly, it promotes industrial expansion and overall economic growth by ensuring a reliable power supply. 
• Additionally, the project enhances Centre–State cooperation through coordinated planning and infrastructure development. 
• Finally, it generates substantial employment opportunities during both the construction and operational phases, thereby contributing to long-term regional stability and economic resilience.

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Environmental and Social Considerations:

Although hydropower is a renewable energy source, large-scale projects inevitably raise environmental and social concerns. 

• To begin with, such projects may lead to the submergence of forest areas and have a significant impact on river ecology and aquatic biodiversity. 
• In addition, they can result in the displacement of local communities, affecting livelihoods and social structures.
• Therefore, to ensure sustainable and responsible implementation, strict compliance with Environmental Impact Assessment (EIA) norms, robust Rehabilitation and Resettlement (R&R) policies, and continuous ecological monitoring is essential to balance development objectives with environmental conservation and social justice.

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Conclusion:

In conclusion, the Kamala Hydroelectric Project in Arunachal Pradesh represents a strategic blend of clean energy, flood moderation, and regional growth in the Northeast. By harnessing the state’s vast hydropower potential, the project supports India’s renewable energy goals, Nationally Determined Contributions (NDCs), and the net-zero emissions target by 2070. Moreover, it emphasises on flood management in the Brahmaputra basin, economic benefits to Arunachal Pradesh, and Centre–State cooperation. Overall, the Kamala HEP stands out as a key infrastructure initiative. It aims to drive energy security, climate resilience, and balanced regional development in India’s eastern Himalayas.

Source: Arunachal Times

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