Context
NHPC’s 1,720 MW Kamala Hydroelectric Project in Arunachal Pradesh is awaiting forest clearance for the diversion of 3,278 hectares of forest land. The case highlights the challenge of balancing hydropower development with forest conservation in the ecologically sensitive Eastern Himalayas.
About the Project
- Location: Built on the Kamala River (right-bank tributary of Subansiri River) in Kamle district, Arunachal Pradesh. (Formerly known as Subansiri Middle Hydroelectric Project).
- Project Type: Storage-based hydropower project with a designated flood moderation component.
- Developer: NHPC Ltd (Central Public Sector Undertaking) in joint venture with the State Government.
- Core Objectives: Harness clean energy (1,720 MW capacity) and mitigate downstream flood damage in the Brahmaputra valley.
Key Features
- Concrete Gravity Dam: Features a 216-metre-high concrete gravity dam designed to withstand hydrodynamic pressure through structural dead weight.
- Underground Powerhouse: Equipped with 8 main units (210 MW each) and 1 auxiliary unit (40 MW), totaling 1,720 MW capacity.
- Annual Output: Estimated annual energy generation of ~6,870 Million Units (MU).
- Financial Capital Outlay: Approved investment of ₹26,069.5 crore by the CCEA (Cabinet Committee on Economic Affairs).
Implementation and Financing
- Execution Model: Built under the Build-Own-Operate-Transfer (BOOT) model.
- Ownership Structure: Executed via Joint Venture between NHPC (74% equity) and Arunachal Pradesh Government (26% equity).
- Debt-Equity Ratio: Structured on a 70:30 debt-equity financing ratio.
- Central Budgetary Support: Grants extended for enabling infrastructure (roads/bridges) and designated flood moderation components.
- State Support & Benefits: Includes 100% SGST reimbursement alongside 12% free power and 1% Local Area Development Fund (LADF) allocations for the host state.
Environmental Clearance & Afforestation Framework
- Dual Clearances: Requires separate Environmental Clearance (EC) and Forest Clearance (FC) from MoEFCC.
- Expert Appraisal Committee (EAC): Recommends environmental approval for river valley projects.
- Forest Advisory Committee (FAC): Approves forest land diversion under the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980.
- Compensatory Afforestation (CA): Mandates non-forest land equivalent to diverted area; if unavailable locally, requires twice the diverted forest area on degraded forest land.
- Inter-State CA: Allocates ~7,018 hectares of afforestation land in Madhya Pradesh due to hill-terrain constraints in Arunachal Pradesh.
Environmental & Socio-Economic Concerns
- Deforestation & Canopy Loss: Threatens heavy tree-felling, including high-density Himalayan forest canopy cover.
- Ecological Asymmetry in CA: Subtropical biodiversity loss in the Eastern Himalayas cannot be ecologically substituted by plantations in Madhya Pradesh.
- Involuntary Displacement: Impacts thousands of local families across multiple districts, triggering socio-economic and R&R (Rehabilitation & Resettlement)
- Cumulative Basin Impact: Multiple mega-projects in the Subansiri river basin risk altering natural flow regimes and compounding downstream ecological stress.
- Seismic & Geological Hazards: Located in a high-risk seismic zone (Zone V) vulnerable to landslides and dam safety risks.
Environmental Safeguards & Way Forward
- Ecosystem Restoration: Implement independently monitored catchment area treatment and habitat restoration plans.
- Environmental Flows (e-flows): Maintain required minimum river flow across seasons to preserve river health and aquatic life.
- Cumulative Impact Assessment: Conduct integrated basin-wide assessments across the Subansiri river to address combined ecological impacts.
- Statutory Clearances: Secure mandatory forest and wildlife clearances before starting construction work.
- Community Welfare & R&R: Ensure fair Rehabilitation and Resettlement (R&R) along with local development (schools, hospitals, skill centers)
FAQs
Q1. Where is the Kamala Hydroelectric Project located?
Ans. On the Kamala River in Kamle district, Arunachal Pradesh
Q2. What is the BOOT model?
Ans. Under Build-Own-Operate-Transfer (BOOT), the developer builds and operates a project for a fixed period before transferring it to the government.
Q3. What is the role of the FAC in this project?
Ans. The Forest Advisory Committee (FAC) examines proposals for forest-land diversion and advises on forest clearance.
Q4. What is compensatory afforestation?
Ans. It involves raising plantations to compensate for forest land diverted for non-forest use.


