India has approved a series of projects aimed at strengthening the country’s energy security, boosting regional infrastructure, and supporting socio-economic development across key states.

India’s Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved major hydroelectric and refinery projects in Arunachal Pradesh and Rajasthan, with combined investments exceeding Rs. 49,000 crore.

Kalai-II Hydro Electric Project
A key initiative, the Kalai-II Hydro Electric Project, will be built on the Lohit River in Anjaw District, Arunachal Pradesh, at a total investment of Rs. 14,105.83 crore. Scheduled for completion in 78 months, the 1200 MW project (6 x 190 MW and 1 x 60 MW) is expected to generate 4,852.95 MU of electricity annually.

Implemented through a joint venture between THDC India Limited and the Government of Arunachal Pradesh, the project will strengthen the state’s power supply, support peak demand management, and contribute to national grid stability.

The state will receive 12% free power and an additional 1% for the Local Area Development Fund (LADF). Infrastructure improvements, including 29 kilometres of roads and bridges, will largely benefit local communities.

Kamala Hydro Electric Project
Following this, the Cabinet approved the Kamala Hydro Electric Project across Kamle, Kra Daadi, and Kurung Kumey districts, with an investment of Rs. 26,069.50 crore. The 1720 MW project (8 x 210 MW & 1 x 40 MW) is expected to produce 6,870 MU annually and provide flood moderation benefits in the Brahmaputra valley.

Developed through a joint venture between NHPC Limited and the state government, Kamala HEP will improve energy security, create employment, and accelerate infrastructure development with around 196 km of new roads and bridges.

The project also includes hospitals, schools, and marketplaces funded via dedicated project funds. Arunachal Pradesh is also seeing progress on other major hydropower projects, including Subansiri Lower (2000 MW), Dibang Multipurpose (2880 MW), and the planned Etalin project (3097 MW).

HPCL Rajasthan Refinery Expansion
In western India, the Cabinet approved a revised investment for HPCL Rajasthan Refinery Limited (HRRL) at Pachpadra, Balotra, Rajasthan. The total project cost has increased from Rs. 43,129 crore to Rs. 79,459 crore, with an additional Rs. 8,962 crore equity investment by HPCL, bringing its total stake to Rs. 19,600 crore.

The refinery, a greenfield 9 MMTPA petrochemical complex, will produce high-value products including 1 MMTPA petrol, 4 MMTPA diesel, 1 MMTPA polypropylene, and specialty chemicals such as LLPDE, HDPE, benzene, toluene, and butadiene.

The project is expected to enhance energy independence, reduce import dependence, generate thousands of jobs during construction, and contribute to the industrial development of a backward region. Commercial operations are scheduled to commence on 1 July 2026.

Together, these projects reflect India’s commitment to expanding its energy infrastructure, supporting local development, and creating employment opportunities while reinforcing national energy security. The combined hydropower capacity of Arunachal Pradesh and the expansion of petrochemical production in Rajasthan will significantly contribute to meeting India’s growing electricity and industrial needs.

Prime Minister Modi, commenting on the approvals, emphasised that these projects “will drive economic growth, strengthen energy independence, and provide tangible benefits to local communities through employment, infrastructure, and development initiatives.”

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