Powering a Greener Future: 1200 MW Kallai-II Project

The Cabinet proposed an investment worth Rs. 14,106 crore for building the first-ever hydro-power station in the Lohit basin in Arunachal Pradesh. As stated by the Committee for Economic Affairs, chaired by Honourable Prime Minister Shri Narendra Modi, the development work on the 1200 MW Kallai-II Hydropower Plant has commenced to create an infrastructural development through clean power production in the Northeast Frontier of Arunachal Pradesh. The Indian government recently signed this project along with the 1,720 MW Kamala Hydroelectric Plant, attempting to achieve a balance between development, environmental protection, and energy requirements. Further details about the new hydroelectricity project in Arunachal Pradesh and its support in the Clean Fuel Mission of India are presented below.

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Overview of 1200-MW Kallai-II Hydropower Project-

The recently launched 1200-MW Kallai-II Hydropower Project on the Lohit River in Anjaw district of Arunachal Pradesh is a run-of-river Hydropower project integrating development with nature to boost the power needs of the region. 

• On 8 April 2026, the proposed project will be developed with a huge investment of Rs. 14,106 crore for its construction and is expected to be completed in 78 months, i.e. 6.5 years turnaround time.
• This is the first-ever run-of-river project with pondage to be constructed in the Lohit Basin, a major tributary of the Brahmaputra river system that flows from the Himalayas to Assam. The ‘run-of-river’ design, along with poundage, means the project will utilise the natural river flow with limited water storage. In this, instead of making large reservoirs, it will allow some flexibility to generate power in the season with full efficiency.
• This power dam will be situated near Hawai village (Anjaw district) in the upper Eastern parts of Arunachal Pradesh near the Indo-China border.

Kallai-II Hydropower Dam Features-

• Power output capacity: The Kallai-II hydroelectric powerhouse will produce an output of 1200 MW of power every hour, thus displaying its production capacity of 1.2 million kWh.
• The project offers a concrete gravity dam with 125 m gross head for mechanical power efficiency, coffer dams, intake tunnels, pressure shafts, diversion, an underground house power, a surge chamber, and a tail race tunnel. 
• Turbine configuration of the projects includes 6 units of 190 megawatt turbines each and one smaller unit of 60 megawatt turbine, thus, combining to form a total power capacity of 1200 megawatt of power generation in the region. 
• Moreover, the new power plant will produce 4,853 million units of hydroelectricity annually and includes the construction of reservoirs of about 318.8 million cubic meters.

Implementation of Kallai-II Hydropower Project-

The new Hydropower Project was launched by the Chairman of the Cabinet Committee and Prime Minister Narendra Modi as part of India’s Clean Energy push in north-east India.

• The project was inaugurated on April 8 2026, to enhance infrastructural development in the Anjaw and Namsai districts of Arunachal Pradesh. 
• The government proposed a total investment of ₹14,100+ crore and an additional release of ₹599 crore as budgetary assistance for the construction of roads, bridges, and associated power lines under enabling infrastructure. Also, ₹750 crore as Central Financial Assistance to the State for equity sharing purposes.
• This will be achieved via the collaboration between THDC (Tehri Hydro Development Corporation) India Limited and the Government of Arunachal Pradesh through an MoA in Dec 2023, whereby the power plant shall be owned by the state. 
• There have been previous hydropower plants built in other parts of Arunachal Pradesh, like the Subansiri Lower, the Dibang Multipurpose, and the Etalin power plants, through publicly held corporations such as NHPC and SE-HPCL.

Key Significance of the Kallai-II (1200MW) Hydro Power Dam Project-

• Kallai-II of 1200 MW will produce around 4,853 million units of electricity per year to meet the increasing demand for electricity and control peak load, as hydropower plants can rapidly adjust to the fluctuations in electricity production.
• Help manage the Brahmaputra River’s flood problem through regulation of the water level in the Lohit River while also contributing to increased electricity generation in the state, thus minimising dependence on electricity generated elsewhere.
• The 1200 MW Kallai-II power plant forms part of an overall plan of making Arunachal Pradesh a centre for hydroelectric power production, in conjunction with other hydroelectric power plants such as the 1720 MW Kamala HEP, which will be constructed in the Kamle (Kra Daadi) and Kurung Kumey districts.
• Moreover, several plans of generating electricity through other means are in the pipeline, such as 2000 MW Lower Subansiri, 2880 MW Dibang, and 3097 MW Etalin HEP.
• Help maximise the potential for electricity generation from the state’s abundant hydropower resources, estimated at over 47,000 megawatts, but partially utilised.

Economic and Social Impact of the Kallai-II (1200-MW) Project-

The Kallai-II 1200-MW Project is a step toward making Arunachal a key contributor to renewable energy generation and energy-security goals, thus socially and economically impacting India’s growth:

• Boosting job opportunities in the region: The construction of the Hydropower dam will bring in various job opportunities for the locals, which may be skilled or semi-skilled. They will get a chance to participate in construction work, maintenance, operational activities and indirect tasks such as transportation, management, and services. 
• Infrastructural Improvement: As earlier districts like Namsai and Anjaw were underdeveloped, the construction of the 1200-MW Kallai-II dam project and similar projects will boost infrastructural development in Arunachal Pradesh. Infrastructure development elements like roads, bridges, telecommunications, and electrical transmission networks will be built here, thus improving the existing state of affairs in these areas.
• Strategic Viewpoint: The Lohit basin is close to the international boundary of India with China, and infrastructure development in such regions is part of India’s policy of development cum security.
• Self-Reliance: Development of such remote regions, economically integrated within India, will promote stability and reduce dependence on external aid.
• Benefits to the State: The state will receive a 12% free energy, besides another 1% for Local Area Development Fund (LADF) purposes.

Challenges in the 1200-MW Kallai-II Hydropower Project-

Despite these advantages, however, there are a few issues that the Kallai-II project will have to contend with:

• Environmental Issue: In this project, land is required in more than 400 trees will be uprooted as part of the project, which is detrimental to the local flora and fauna. Moreover, as the project is hydro-based, there may be chances that fish may be displaced from the region and harm the natural aquatic environment.
• Execution Issue: The Kallai-II powerplant project may face implementation issues due to terrain inequalities, landslides, and adverse climatic conditions that could affect the budget and schedule.
• Social Issue: It is crucial to address compensation issues for those who have been affected by the project. Many local families were still waiting for their displacement compensation, though no proper consideration was taken under this.

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