Arunachal Pradesh Signs Agreement for 1,200-MW Kalai-II Hydroelectric Project

The Arunachal Pradesh government has signed an agreement with the Tehri Hydropower Development Corporation India Ltd (THDCIL) for developing the 1,200-MW Kalai-II hydroelectric project in the Lohit river basin at a cost of Rs 13,000 crore.

Representative image

Signing of the Agreement

State Hydropower Commissioner Ankur Garg and THDCIL's Director Technical Bhupender Gupta signed the agreement on behalf of the two sides. Chief Secretary Dharmendra presided over the program.

Previous Agreements and Project Allotment

In August, the state government signed agreements with three central PSUs - NHPC, SJVN, and NEEPCO - for developing 12 hydropower projects, having a combined capacity of 11,517 MW, in Subansiri, Dibang, and Siang basins. With the allotment of the Kalai-II project to THDCIL, the government concluded agreements for 13 projects with a total capacity of 12,717 MW in this calendar year.

The Kalai-II project was initially allotted to an independent power developer in 2009, but it did not take off due to various reasons. This is the first project to be taken up by THDCIL, a CPSU, in the state.

Project Benefits

Garg said the project would bring in an investment of over Rs 13,000 crore in the state during its construction phase. Once commissioned, it will generate a revenue of over Rs 300 crore annually in free power for the state.

Deputy Chief Minister Chowna Mein said the project will create historic development and employment opportunities in the Lohit basin area. The state government will have a 26% equity in the project. The dividend from this equity participation will further augment the state's earnings, said Mein, who also holds the power and hydropower portfolios.

Gratitude and Commitment

Chief Minister Pema Khandu thanked Prime Minister Narendra Modi and Union Power Minister RK Singh for their support toward restarting the project. He said the state was committed to ensuring the full realization of its hydropower potential for meeting the energy needs of the country.