Itanagar: In a significant development on December 30, Tehri Hydropower Development Corporation India Limited (THDCIL), a miniratna Schedule A' Public Sector Undertaking (PSU) by the Government of India, entered into a pact to construct the 1,200 MW Kalai-II hydroelectric project (HEP) within the Lohit river basin of Arunachal Pradesh.

The Rs 13,000 crore deal was finalized during a signing ceremony attended by Chief Secretary Dharmendra, State Hydropower commissioner Ankur Garg, and THDCIL's director (Technical) Bhupender Gupta.

The memorandum of agreement (MoA) signed between the Arunachal Pradesh government and the Central Public Sector Undertaking (CPSU) marked a crucial step in furthering the state's hydroelectric power initiatives. 
This agreement comes after a series of MoAs signed by the state government with central PSUs, including NHPC Ltd, SJVN Ltd, and NEEPCO Ltd in August 2023, for the development of 12 HEPs with a cumulative capacity of about 11,517 MW.

The Kalai-II project, originally assigned to Reliance Power Limited in 2009, faced prolonged delays but is now set to be revitalized under the stewardship of THDCIL. The collaboration between the central and state governments over the past two years has paved the way for overcoming obstacles and resuming the project's execution.

Reliance Power, in the wake of the MoA signing, has agreed to sell its Kalai-II HEP to THDC India for Rs 128.39 crore. The agreement involves the transfer of development rights, physical assets, studies, clearances, designs, and intellectual properties of Kalai-II to THDC.

Commissioner Ankur Garg highlighted that THDCIL's venture is expected to inject over Rs 13,000 crore into Arunachal Pradesh during the construction phase. Post-completion, the hydroelectric facility is projected to contribute more than Rs 300 crore annually through free power supply to the state.

Deputy Chief Minister Chowna Mein emphasized the transformative impact of the Kalai-II project on the socio-economic landscape of the Lohit basin, underlining the state's 26 per cent equity stake. He expressed optimism about the financial returns from this equity, bolstering Arunachal Pradesh's revenue streams.

Chief Minister Pema Khandu extended gratitude to Prime Minister Narendra Modi and Union Power Minister RK Singh for their support in reviving the project. 
He reaffirmed Arunachal Pradesh's commitment to harnessing its hydropower potential to meet the nation's escalating energy demands. 

Kalai-II stands out as the first project to be allotted to a central PSU in the Lohit basin.

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