🗞️ Why in News The Cabinet Committee on Economic Affairs (CCEA) approved the ₹14,105.83 crore Kalai-II run-of-river hydroelectric project on the Lohit River in Anjaw District, Arunachal Pradesh. It is the first hydro project in the Lohit Basin and will be implemented as a joint venture between THDC India Limited (an NTPC subsidiary) and the Government of Arunachal Pradesh.

Project Overview

Parameter Details
Name Kalai-II Hydroelectric Project
Type Run-of-River (RoR), no large reservoir
Installed capacity 1,200 MW (6 × 190 MW + 1 × 60 MW = 7 units)
Annual generation 4,852.95 million units (MU)
Project cost ₹14,105.83 crore
Location Lohit River, Anjaw District, Arunachal Pradesh
Approving body Cabinet Committee on Economic Affairs (CCEA)
Implementing agency THDC India Limited (JV partner) + Govt. of Arunachal Pradesh
Basin significance First hydro project in the Lohit River Basin

The Lohit River: Geographic Context

The Lohit River is a major tributary of the Brahmaputra (Assam calls it the Lohit) and one of three main rivers that join to form the Brahmaputra in Assam.

Key Facts: Lohit River

  • Origin: Zayul Chu (Tibetan name), rises in eastern Tibet
  • Enters India through the Kibithoo area of Anjaw District, Arunachal Pradesh
  • Flows through Arunachal Pradesh before joining the Brahmaputra at Sadiya (Assam)
  • Length in India: ~200 km
  • Drainage basin: Shares watershed with Dibang and Siang rivers
  • The Lohit River Basin has remained largely untapped for hydropower, Kalai-II is the first project approved in this basin

Anjaw District

  • Easternmost district of Arunachal Pradesh (and of India)
  • Borders: China (northeast), Myanmar (east), Nagaland (south)
  • District headquarters: Hayuliang
  • Strategic significance: Border district with China’s Yunnan Province

Implementing Agencies

THDC India Limited

  • Full name: THDC India Limited (formerly Tehri Hydro Development Corporation India Ltd)
  • Ownership: NTPC holds 74.5% stake (making it an NTPC subsidiary)
  • Government of India holds the remainder through Ministry of Power
  • Primary mandate: Development of hydro and other renewable projects
  • Major existing project: Tehri Hydro Power Complex (Uttarakhand), 2,400 MW

Joint Venture Structure

  • THDC India Limited + Government of Arunachal Pradesh: JV for Kalai-II
  • This follows the established model for hydro projects in Arunachal Pradesh: PSU + State government JV
  • State equity participation ensures Arunachal Pradesh receives royalties and employment benefits

Run-of-River Technology: UPSC Context

A run-of-river (RoR) hydroelectric project uses the natural flow of a river without creating a large storage reservoir. This has significant implications:

Feature Run-of-River Storage Dam
Water storage Minimal, diversion weir only Large reservoir
Environmental impact Lower displacement, lower submergence High submergence, displacement
Power generation Seasonal variation (depends on river flow) Can regulate output year-round
Construction time Generally faster Slower
Example Kalai-II, Subansiri Lower Bhakra-Nangal, Tehri

Employment and Social Benefits

  • Direct employment: Approximately 1,700 jobs during construction and operation
  • Reservation policy: 50% of jobs reserved for project-affected families (PAFs): a standard NHPC/hydro project policy
  • Local procurement: Preference for materials sourced from Arunachal Pradesh

India’s Hydropower Ambitions: Policy Context

National Hydropower Target

India has set a target of 500 GW non-fossil fuel capacity by 2030. Hydro is classified as renewable energy (after the Electricity (Amendment) Act notifications) and counts toward this target.

Hydro Policy Development Details
Large hydro → Renewable (2019) Ministry of New & Renewable Energy classified large hydro (>25 MW) as RE, eligible for RPO targets
Hydro Purchase Obligation (HPO) States must purchase a minimum % of power from hydro sources
₹12,000 crore incentive Central financial assistance for hydro projects >25 MW above a cost threshold

Arunachal Pradesh Hydro Potential

  • Arunachal Pradesh has a theoretical hydro potential of ~50,000 MW: one of the highest in India
  • Only a fraction (~3,000 MW) is currently developed
  • Key rivers: Brahmaputra (Siang), Subansiri, Kameng, Lohit, Dibang
  • Strategic dimension: Developing hydro capacity in Arunachal Pradesh also signals Indian infrastructure presence in a border state disputed by China

UPSC Relevance

Paper Angle
GS3, Economy Hydropower policy; renewable energy targets; PSU-state JV model
GS3, Environment Run-of-river vs storage dam; river basin ecology
GS1, Geography Lohit River basin; Anjaw District; Brahmaputra tributaries
GS2, Governance CCEA; Centre-state infrastructure partnership
Prelims Lohit River origin; Anjaw District; THDC India Limited ownership; annual generation figure

📌 Facts Corner

Kalai-II HEP: Cost: ₹14,105.83 crore | Capacity: 1,200 MW (6×190 MW + 1×60 MW) | Annual generation: 4,852.95 MU | River: Lohit River | District: Anjaw, Arunachal Pradesh | Approved by: CCEA | Implementing JV: THDC India Limited (NTPC subsidiary, 74.5% stake) + Govt. of Arunachal Pradesh | Basin first: First project in Lohit Basin | Type: Run-of-River | Jobs: ~1,700; 50% reserved for PAFs | Lohit River: originates in Tibet; joins Brahmaputra at Sadiya | THDC major project: Tehri Hydro (2,400 MW, Uttarakhand) | GS3: Economy, Environment; GS1: Geography

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