The Public Investment Board (PIB) has cleared the 1,720 MW Kamala hydroelectric project in Arunachal Pradesh with an estimated investment of Rs 260 billion.
The project is proposed on a tributary of the Subansiri river and will be implemented through a joint venture between NHPC Limited and the Government of Arunachal Pradesh. The project is planned to be financed through a debt–equity ratio of 70:30, with central government support for enabling infrastructure worth Rs 13.40 billion and a flood moderation component estimated at Rs 47.44 billion. It will also receive 100 per cent reimbursement of state goods and services tax. Some key benefits include flood moderation in the Brahmaputra basin with an allocation of 12 per cent free power to Arunachal Pradesh and an annual contribution of about Rs 400 million to the local area development fund and regional infrastructure development.