The Cabinet Committee on Economic Affairs, chaired by the  Prime Minister Shri Narendra Modi has approved investment of Rs.14,105.83 crore for construction of Kalai-II Hydro Electric Project (HEP) on Lohit river in Anjaw District of Arunachal Pradesh. The estimated completion period for the project is 78 months.

The project with an installed capacity of 1200 MW (6 x 190 MW & 1 x 60 MW) is expected to generate 4852.95 MU of energy annually. As the first hydro project in the Lohit Basin, it will strengthen power supply in the State, support in peak demand management, and contribute to balancing the national grid.

The Project will be implemented through a Joint Venture Company between THDC India Limited and the Govt. of Arunachal Pradesh.  Government of India shall extend ₹599.88 crore as budgetary support for construction of roads, bridges and associated transmission line under enabling infrastructure besides Central Financial Assistance of ₹750 crore towards equity share of the State.

The State will receive 12% free power and an additional 1% earmarked for the Local Area Development Fund (LADF), along with significant infrastructure development and socio-economic benefits for the region.

There will be significant improvement in infrastructure in Namsai and Anjaw District of Arunachal Pradesh, including the development of around 29 kilometres of roads and bridges, for the project which shall be mostly available for local use. Local populace shall also be benefitted from many sorts of compensations, employment and CSR activities.

Hydro electric project investment approval strengthens power supply, enables infrastructure development, and provides free power and local area benefits. Investment approval is granted for construction of the Kalai-II Hydro Electric Project on the Lohit river in Anjaw District of Arunachal Pradesh, with an installed capacity of 1200 MW and an estimated completion period of 78 months. The project is expected to generate annual energy output and to strengthen power supply in the State, assist in peak demand management, and contribute to balancing the national grid. The arrangement provides for 12% free power to the State and an additional 1% earmarked for the Local Area Development Fund.