The Government of Arunachal Pradesh has entered into a Memorandum of Agreement (MoA) with Tehri Hydropower Development Corporation India Ltd (THDCIL), a central Public Sector Undertaking (PSU), to jointly undertake the development of the 1200 MW Kalai-II hydroelectric project situated within the Lohit river basin.
Tehri Hydropower Development Corporation India Ltd (THDCIL) is one of the pioneering forces in India’s energy landscape. Primarily known for its hydroelectric power initiatives, THDCIL focuses on sustainable development through hydroelectric projects. THDCIL plays a instrumental role in harnessing water resources for clean energy generation, contributing significantly to India’s power sector growth.
Commissioner Ankur Garg representing the hydropower sector and THDCIL’s Director (Technical) Bhupender Gupta sealed the agreement for the state government and the power company respectively. The signing ceremony was overseen by H. K Paliwal, an advisor to the state government, and Dharmendra, the chief secretary. Earlier in August, the state government had entered agreements with three central PSUs—NHPC, SJVN, and NEEPCO—for the development of 12 hydropower projects totaling 11,517 MW in the Subansiri, Dibang, and Siang basins. Adding the Kalai-II project to THDCIL’s portfolio, the state has now finalized agreements for 13 projects, reaching a total capacity of 12,717 MW in the current calendar year.
In 2009, the Kalai-II project was initially assigned to an independent power developer but encountered persistent delays for various reasons. To unleash its potential, concerted efforts from both the central and state governments have been ongoing for the past two years. Recently, this project was reassigned to THDCIL, marking the first instance of a central PSU undertaking a project in the Lohit basin and the inaugural venture of THDCIL in the state. Hydropower commissioner Garg highlighted that this initiative is poised to inject investments exceeding Rs. 13,000 crore during the construction phase, benefiting the state significantly. Upon completion, it is projected to yield more than Rs. 300 crore annually in free power revenue for the state, along with around Rs. 25 crore per year allocated to the local area development fund.
During the event, Chowna Mein, Deputy Chief Minister, Arunachal Pradesh, has highlighted the significant impact of the project on the development and job creation in the Lohit Basin region. He emphasized the collaboration between the state government and a 26 percent equity stake, foreseeing increased revenue through dividends, further boosting the state’s earnings. Pema Khandu, the Chief Minister of Arunachal Pradesh, on the other hand, has expressed his gratitude to Prime Minister Narendra Modi and Union Power Minister R K Singh for their unwavering support in reviving the project. He affirmed the state’s dedication to maximizing hydropower potential for national energy security, urging all involved parties to expedite the project’s execution with a focused, mission-oriented approach.
