Arunachal Pradesh is gearing up to bolster its power infrastructure by launching two significant hydroelectric projects, with an investment of around Rs 21,700 crore. These projects are anticipated to boost electricity generation capacity, fostering regional development and energy security in the state.
The State Cabinet, led by Chief Minister Pema Khandu, has given the green light for State Goods and Services Tax (SGST) reimbursement concessions for the Kalai II Hydroelectric Project (1,200 MW) and the Attunli Hydroelectric Project (680 MW). These projects, developed by THDC India Limited and Satluj Jal Vidyut Nigam (SJVN) Limited respectively, aim to enhance the financial viability of large hydropower projects.
Located in Anjaw and Dibang Valley districts, the Kalai II and Attunli projects are set to be implemented through joint venture companies, with the Arunachal Pradesh government holding a 26% equity stake. With a combined investment of Rs 21,700 crore, these projects are projected to yield approximately Rs 458 crore annually in free power and Rs 84 crore annually under the Local Area Development Fund post-commissioning.
The initiatives are expected to create substantial job opportunities, particularly benefiting the project-affected areas. Employment reservations for local tribal communities have been outlined, ensuring inclusive participation in the projects. Additionally, the Cabinet has approved annuity grants for project-affected families throughout the lifetime of the projects, aiming to involve them as long-term partners in the operation of hydropower projects.
To ensure the smooth execution of ongoing and upcoming hydropower projects, the Cabinet has relaxed recruitment rules for senior technical leadership positions. Moreover, the approval of the Renovate–Own–Operate–Transfer (ROOT) Policy for Small Hydropower Projects, 2026, is set to revive underperforming projects and boost renewable energy generation in alignment with the State’s Decade of Hydropower vision.
