Economy

Arunachal Pradesh Hydropower Projects (Kamala and Kalai-II)

GS3 Infrastructure: EnergyGS1 Geography of NortheastPrelims and Mains

In the news since 8 April 2026

Why in news
On 8 April 2026 the Cabinet Committee on Economic Affairs approved Rs 26,069.50 crore for the 1720 MW Kamala Hydro Electric Project in Arunachal Pradesh.
What it is
Kamala HEP is a 1720 MW run-of-the-river style hydropower project planned in Kamle, Kra Daadi and Kurung Kumey districts of Arunachal Pradesh. It will be built by a joint venture of NHPC Limited and the state government. It is part of the push to use the Brahmaputra basin's hydro potential in the north-east.
Capacity and output
Installed capacity is 1720 MW (8 x 210 MW and 1 x 40 MW), expected to generate 6870 MU of energy.
Implementation
It will be built through a Joint Venture Company between NHPC Limited and the Government of Arunachal Pradesh.
Central budgetary support
The Centre will give Rs 4,743.98 crore for flood moderation, Rs 1,340 crore for enabling infrastructure, and Rs 750 crore as Central Financial Assistance for the state's equity share.
Benefits to the state
The state gets 12% free power and an additional 1% for the Local Area Development Fund.

Don’t confuse with Free power vs LADF: Free power (12% of generation) goes to the host state. The LADF is a separate 1% share of project revenue for local area development.

Don’t confuse with MW vs MU: MW is installed capacity (power at an instant). MU is million units of energy generated over a period.

Economy terms and data: 42 Prelims questions since 2013, rising in recent years; they test what a term or instrument means. In Mains, 12 news-triggered questions.

No practice question for this one; the card may still help an answer. Why: Hydropower in the Northeast with flood moderation and free power to the state, but project-specific, so UPSC is unlikely to set a question.

Worth revising until Prelims 2027: most news questions come within two years of the event.

Each time it was in the news

  1. 8 April 2026

    On 8 April 2026 the Cabinet Committee on Economic Affairs approved Rs 26,069.50 crore for the 1720 MW Kamala Hydro Electric Project in Arunachal Pradesh.